The nifty 50 indexes lost 131 points and closed at 16,945 levels whereas BSE Sensex lost 398 points and closed at the 57,525 mark. The Nifty Bank index corrected 221 points and finished at 39,395 levels on Friday’s session.
According to stock market experts, global markets including Dalal Street is already under the heat of a bank crisis in the US and looming economic slowdown worries and this new geo-political tension in the Middle East might dent the prospects of pull back rally when the market opens on Monday next week. They said that the Indian stock market or any other global market can’t afford new tension as they already have a lot of challenges to face in upcoming sessions. They advised short-term investors to look at quality agriculture and fertilizer stocks to buy if the Middle East tension further escalates. However, for long-term positional investors, IT remained their favorite sector for investing.
Source: CBS Evening News
Global triggers for the Indian stock market
Speaking on how the US air strike would impact the Indian stock market, Avinash Gorakshkar, Head of Research at Profitmart Securities said, US air strike news in Syria came at a very bad time as the Indian stocks were recovering from the morning losses after losing on Thursday session. Most of the key benchmark indices had turned green with handsome gains but just a few hours ahead of the market close, this fresh geo-political tension arrived, triggering a sell off the trigger on Dalal Street.
Avinash Gorakshkar further said that global markets including Dalal Street are already under the stress of the banking crisis in the US and the looming economic slowdown. So, in case, this Middle East tension further escalates, then Nifty might not be able to sustain its October 2022 low of around 16,800. Gorakshkar advised investors to keep an eye on the crude oil prices when the market opens on Monday as any rise in crude oil prices would be an indicator of a fresh sell-off in the markets.
Source: Mint
Buy or sell the stock for Monday
On stocks to buy on Monday to remain safe from the potential impact of a US air strike in Syria, Avinash Gorakshkar said, If crude oil prices jump on Monday, then oil producing companies, carbon black and lubricant maker companies will come directly under the stress and their stocks are expected to trade weak on Monday. But, rising crude oil price means a rise in inflation as well. So, it will have an indirect impact on other segments as well. But, IT and fertilizer sectors are expected to remain insulated from this geo-political tension.
On which stock to buy in the current geopolitical crisis, Ravi Singhal, CEO at GCL Broking said, In the IT segment, TCS is expected to outperform the major mid-cap IT stocks in India. If it becomes available at around 2850 to 2900 apiece levels, then it would be a big opportunity for long-term positional investors to buy this Tata stock. Similarly, in the fertilizer segment, one should look to buy GNFC and Chambal Fertilizers for one to one and half months for 8-10 percent gains from current levels.
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