Sensex Today, Nifty 50, Stock Market Highlights: Markets end in red – Nifty closes below 23,800, Sensex falls 700 points; Maruti Suzuki, IndiGo see sharp cut

The Sensex ended at 76,847.57, down 702.68 points or 0.91%. The Nifty closed at 23,842.65, lower by 207.95 points or 0.86%.

"In the present context of naval blockade of the Hormuz Strait by the US and further escalation of the conflict, rupee is likely to weaken more. Hopes of an early settlement and opening of the Hormuz Strait leading to sharp decline in the price of crude are slowly eroding. In the renewed uncertain situation FPIs are again likely to continue selling in India in the near-term. This will add to the weakness of the rupee, which can move to 93.50 level soon," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments.

Benchmark index Nifty 50 was down 0.72% or 173.6 points at 23,877 points. Amongst the top laggards were auto stocks of Eicher Motors with its share price down nearly 5%, and Maruti's stock down 4.6%. Share price of Indigo was down nearly 3%, while Reliance, Bajaj Finance and Shree Ram Finance was down by more than 2%.

Financial stocks were leading the declines.

Market Veteran, Ajay Bagga replying to tweets remarkets that US President Donald Trump particularly made the announcement at a time when Asian markets will fall as the oil prices rise. He added that over market losses investors will rush to stop losses and some people will may end up making millions of these informed positions, signalling all of this is a part of a bigger plan.

https://twitter.com/Ajay_Bagga/status/2043507659845062842?s=20

Share Price of Adani Power surged to a 52 week high of Rs 184.4 in the intraday session. The stock opened at Rs 171.50 and surged by nearly 5%, signalling high investor confidence. Currently the stock is trading Rs 182.08.

Over the past five trading sessions the stock has delivered a return of 10.7%

Share price of Multi Commodity Exchange of India hit a record high on Monday. The stock rose as much as 3.5% during the session. It touched a peak of Rs 2,764.

"In the present context of naval blockade of the Hormuz Strait by the US and further escalation of the conflict, rupee is likely to weaken more,' said Dr. V K Vijayakumar, Chief Investment Strategist, at Geojit Investments

He adds that hopes of an early settlement and opening of the Hormuz Strait which led to sharp decline in the price of crude are slowly eroding. "In the renewed uncertain situation FPIs are again likely to continue selling in India in the near-term. This will add to the weakness of the rupee, which can move to 93.50 level soon," the analyst said.

On the sectoral front, Nifty Auto was down 1.89%, Nifty Oil and Gas was down 1.69%, Nifty Bank was lower at 0.88%. Nifty FMCG was down 1.11%, Nifty IT declined 1.23%, and Nifty PSU Bank was lower at 1.24%.

While Nifty Cement was up 1.76% and Nifty Reits and Realty was up 1.01%

At this hour, NTPC is up 1.72%, ICICI Bank is higher by 1.06%, and Bharti Airtel has gained 1.04%. Bharat Electronics is up 0.42%, while Sun Pharmaceutical Industries is trading higher by 0.35%.

The brokerage house Nomura has reiterated its positive view on India’s steel sector, indicating that the overall outlook remains stable despite global uncertainties. According to the brokerage report, better domestic pricing trends along with steady input costs are helping support earnings for major steel companies.

The brokerage has also maintained its ‘Buy’ rating on select stocks within the sector. Its preferred picks include Tata Steel, JSW Steel, Jindal Steel and Power, and Lloyds Metals and Energy.

Also read: Nomura bets big on steel: Tata Steel, JSW Steel among top picks as margins surge

"Gold prices fell after marking a weekly gain as US -Iran talks fail over the weekend and escalation around the strait of Hormuz increase. While sentiment improved after U.S. President Trump announced a temporary truce, lingering uncertainties around the durability of the agreement—especially amid continued Israeli strikes on Hezbollah targets in Lebanon—kept investors cautious....." said Manav Modi Commodities Analyst, Motilal Oswal Financial Services.

He added that US March CPI data arch CPI showed a sharp spike driven by surging energy prices, which highlighted the inflationary impact of the ongoing conflict. While headline inflation rose significantly, core inflation remained relatively contained, offering some relief to markets.

Modi noted that, elevated inflation expectations continue to complicate the outlook for Federal Reserve policy, reinforcing a higher-for-longer rate environment. "As a result, gold remains caught between geopolitical support and macroeconomic headwinds, with price action driven by inflation trends, interest rate expectations, and ongoing developments in the Middle East conflict. Focus today will be on India CPI and US Existing home sames data," said Modi

Auto stocks saw selling pressure in the intraday today, with several major names ending lower. Maruti Suzuki India declined 4.02%, while Eicher Motors fell 4.16%. Hero MotoCorp dropped 3.38%, and Ashok Leyland slipped 2.35%. Samvardhana Motherson also declined 2.04%.

According to a Reuters report, the Indian rupee is struggling to maintain its support after banks completed forced unwinding arbitrage trade last week. It added that while dollar sales were carried out in the onshore market, with the escalations in the Middle East conflict and oil prices the currency may settle into a fresh position. FPI outflow continues to weigh on the currency.

"These measures do not resolve the ‌underlying external backdrop: India's balance of payments pressures, elevated Middle East exposure via the terms of trade ‌and oil import ​bill, and the ​tepid capital ​inflow environment," Reuters quoted analysts at Goldman Sachs as saying in a note.

Foreign investors have been sellers of local equities and bonds worth ​over $19 billion since the beginning of the West Asia conflict on February 28.

Shares of Jyoti CNC Automation dropped sharply today, falling as much as 16% after news of an investigation into its overseas unit surfaced.

The company said French authorities have launched a probe into its subsidiary, Huron Graffenstaden SAS, along with some employees. The investigation is related to alleged exports of machines classified as dual-use technology, which are subject to strict regulations under European Union laws.

Share price of Tata Chemicals moved sharply higher today, rising up to 11% and marking their fourth straight session of gains.

The recent momentum is linked to renewed speculation around a potential listing of Tata Sons. Tata Chemicals holds a stake in the parent entity, as highlighted in its latest annual report.

Amongst the top NSE losers were Indigo (InterGlobe Aviation), with its share price down nearly 4%,. Stock of Bajaj Finance, Asian Paints, Eicher Motors, and Maruti Suzuki too faced heavy selling pressure.

The Indian Rupee too faced pressure as the currency opened at 93. 28 against the US Dollar, down 0.6% from its previous close of 92.72. The currency went onto slip further towards the 93.39 mark amid escalating oil prices caused over the US-Iran war.

The benchmark Nifty 50 index was lower nearly 2%. FPI outflow continues to dampen the sentiment for the currency. According to NSE data for April 10, FIIs were net sellers of domestic equities worth Rs 910 crore.

The Nifty Oil and Gas index plunged 2.6% in early trade, with sharp selling seen in key stocks. Hindustan Petroleum Corporation led the losses, falling 4.51%, followed by Petronet LNG down 4.24% and Bharat Petroleum Corporation slipping 4.21%.

Among stocks falling up to 3%, Indian Oil Corporation declined 3.02%, while Reliance Industries and Chennai Petroleum Corporation were down around 2.75% each.

Also read: Oil & Gas index sinks 2.6% despite $103 crude spike: Why Reliance, BPCL, and HPCL are plunging today

Selling pressure continues to weigh on frontline stocks at this hour, with State Bank of India down 2.69%, Asian Paints slipping 2.83% and Maruti Suzuki declining 2.85%.

Among other laggards, Bajaj Finance is lower by 3.01%, while InterGlobe Aviation (IndiGo) is the top loser, falling 3.52% in trade.

"With the failure of US-Iran peace talks and Trump’s declaration of US naval blockade in the Strait of Hormuz, uncertainty and along with it crude price have spiked. Brent at $103 is emerging as yet another threat to the economy and markets," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

"How this naval blockade, which in effect will be a US blockade of Iran’s blockade, will play out remains to be seen. There can be dramatic developments on the geopolitical front and consequently on markets also. The ideal strategy in this ultra-uncertain situation is to wait and watch. Rupee might come under renewed pressure in the new unfavourable scenario. The mild FPI buying witnessed last Friday is again likely to reverse further impacting sentiments," he added.

Gold and Silver rates today declined sharply on Monday, April 13, weighed down by a stronger dollar and a surge in oil prices after U.S.-Iran peace talks failed. This led to concerns regarding persistent inflation, which could delay Federal Reserve rate cuts this year.

On MCX, Silver price fell 2.5% to ₹2,37,190 per kg while Gold price lost 0.8% to ₹1,51,457 per 10 grams.

Oil prices surged while equities and bonds declined, as a brief phase of market optimism faded after Donald Trump ordered a blockade of the Strait of Hormuz, intensifying tensions with Iran following the collapse of peace negotiations.

Indian markets are trading lower, with the Sensex down 1,406.05 points or 1.81% at 76,144.20, while the Nifty slipped 411.75 points or 1.71% to 23,638.85.

"Gold dropped about 2% to below $4,700/oz as US plans to blockade the Strait of Hormuz following failed weekend talks with Iran heightened concerns over a worsening global energy crisis." said igar Trivedi, Senior Research Analyst at Indusind Securities.

He added that the effective shutdown of the Hormuz route has driven energy prices sharply higher and intensified inflation risks, reinforcing expectations that central banks may delay rate cuts or even tighten policy further.

"This dynamic has weighed on gold, leaving it down more than 10% since the conflict began. MCX Gold June futures may drop to Rs. 151,500/10g as trend is expected to remain weak in the international markets too," the analyst said.

Indian markets opened sharply lower in today’s pre-opening session, with the Sensex down 3,416.74 points or 4.41% at 74,133.51, while the Nifty slipped 628.15 points or 2.61% to 23,422.45.

The GIFT Nifty is indicating a gap-down start for the markets. The markets are apprehesnive after the peace talks between Iran-US failed. The GIFT Nifty indicates a 300-point plus decline in early trade . The important level to watch is - 24,000.

Investors need to see if the Nifty can hold these levels this week as well. The mid-week holidy tomorrow, i.e. April 14 is one important factor to watch.

With oil prices surging and dollar index gaining, precious metals have again extended marginal declines. Spot gold was quoted near the $4,719/oz level, after hitting its lowest level since April 7 earlier in the ​previous session.

Spot silver too declined to the lows of the $72/oz level before steadying a bit quoted near the $74/oz mark. The tensions surrounding US and Iran are likely to strain the precious metals markets again with the likelihood of rate hikes by central banks globally.

The impact of windfall tax on India’s oil and gas sector could play out differently across companies, according to the brokerage house Nomura. The brokerage expects that the tax may not apply to the export refinery of Reliance Industries, which accounts for nearly half of its total refining capacity. However, domestic refiners are likely to remain under the tax net when exporting products like diesel and ATF.

The report highlighted that standalone refiners such as Nayara, MRPL, CPCL and others could face the windfall tax burden. This, in turn, may change how fuel is sold in the market. Nomura noted that “standalone refiners may get into agreements with OMCs to sell diesel and ATF at their export realized prices (post windfall tax)”, which could reduce costs for oil marketing companies.

As a result, OMCs like Hindustan Petroleum Corporation, Indian Oil Corporation and Bharat Petroleum Corporation may see some benefit. Nomura added that HPCL could gain more, as a large part of its diesel sales depends on supplies from standalone refiners. It also estimates current integrated margins at “-USD2.2/bbl for IOCL, -USD7.3/bbl for BPCL and -USD18.5/bbl for HPCL,” indicating that despite some relief, margin pressure still remains at current price levels.

"Indian markets are set to begin the week on a weak note, with Gift Nifty indicating a gap-down opening near the 23,700 zone. The negative start is largely driven by deteriorating global sentiment following fresh geopolitical escalation in the Middle East. The failure of U.S.–Iran negotiations over the weekend has heightened concerns of a prolonged conflict, further intensified by reports of a U.S. naval blockade on Iranian ports," said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.

"From a technical standpoint, Nifty’s structure remains constructive but vulnerable in the near term. The 24,000 level now acts as an immediate support, followed by 23,600 where buying interest is expected to emerge. A breach below these levels could open the door toward the stronger support base near 23,000. On the upside, 24,500 remains an immediate resistance zone where supply pressure is likely," he added.

In early Asian trade, crude oil prices surges by 8%, again climbing past the $100/bbl mark. The global benchmark, Brent was quoted near the $103/mark, while the US crude, West Texas Intermediate (WTI) was trading near the $105/bbl level.

The surge comes amid failed peace talks between Tehran and Washington over which, US President Donald Trump announced a blockade of the trade-route, Strait of Hormuz. Trump said the blockage would start today at 7:30 PM (IST), prohibiting ships to enter and exit through the Iranian ports.

This has added to the uncertainty for oil prices which are already trading at elevated levels.