Market Update

Domestic Benchmark Indices Extend Slump

On Wednesday, the Nifty 50 and Sensex continued their downward trend, with the Nifty 50 declining by 1.92% to 24,388.8 and the Sensex shedding 2.13% to 78,528.82 as of 9:15 IST. This decline follows the previous day's closure for the Holi celebration.

Market Impact

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The escalating U.S.-Israel clashes with Iran have led to a surge in oil prices to a 19-month high, disrupting Middle East energy shipments and stoking fears of a prolonged conflict. As a result, the Indian rupee has slid to a record low against the dollar, while bond yields have jumped.

Market Volatility

The India VIX, a measure of market volatility, has surged by an astonishing 25%, indicating a significant increase in market risk.

Market Outlook

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According to Ruchit Jain, Head of Equity Technical Research at Motilal Oswal Financial Services, the rising geopolitical tensions have led to a sell-off in the global equity markets, and the short-term trend for Nifty 50 remains negative. The immediate support for Nifty 50 is placed around 24,330, which is the August 2025 lows.

Recommendations

Ruchit Jain recommends buying Bharat Electronics Ltd (BEL) and Oil and Natural Gas Corporation Ltd (ONGC). The defense stock BEL could see a positive momentum in the near term due to the ongoing war situation, while ONGC has recently given a breakout from a year's consolidation phase and has a bullish technical structure.