Sensex, Nifty slip from record highs amid rising Middle East tensions

The S&P BSE Sensex was down 107.07 points to 84,821.54 at around 9:16 am, while the NSE Nifty50 fell 23.50 points to trade at 25,915.55. 

In Short

• Sensex, Nifty fall due to geopolitical concerns in Middle East
• Broader market indices gain despite low volatility in early trade
• JSW Steel, Hindalco, Tata Steel among Nifty50's top gainers

Benchmark stock market indices declined near record high levels due to serious geopolitical concerns in the Middle East.

The S&P BSE Sensex was down 107.07 points to 84,821.54 at around 9:16 am, while the NSE Nifty50 fell 23.50 points to trade at 25,915.55.

However, most of the broader market indices registered gains as volatility remained low in early trade.

Among sectoral indices, Nifty Bank, Nifty Financial Services and Nifty IT declined, while Nifty Metal and Nifty Realty gained.

The top five gainers on the Nifty50 were JSW Steel, Hindalco, Tata Steel, Power Grid and Hero MotoCorp.

On the other hand, the top losers were HUL, Infosys, Wipro, Cipla and HCLTech.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "Two trends deserve attention. The serious global geopolitical concern continues to be the Middle East where things are getting worse. Israeli strikes on Lebanon have killed hundreds of people triggering concerns."

"Crude has inched up. Gold and the volatility index are moving up reflecting anxiety. However, the market remains resilient and the undertone continues to be bullish. Investors have to take a call based on these two trends," he added.

Vijayakumar noted that the preference for quality and fair value is "getting stronger in India as reflected in the continuous rise in Bank Nifty for the eighth straight session".

The return of FIIs into the market in September will aid recovery in frontline banking stocks, he said.

He went on to add that Sebi's latest warning about 93% of individual traders losing money in the F&O market should be taken seriously. "

It is unfortunate that while systematic investors are making good money, the vast majority of individual traders are losing money. The primary responsibility of conserving and growing one’s hard-earned money rests with the individual. Earlier, the individual traders realise this, the better for them," Vijayakumar said.