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The global stock market is currently going through a deep earthquake. The increasing military and geopolitical tension between America and Iran (US-Iran Conflict) has given sleepless nights to investors around the world. Due to huge weakness in global cues, red mark i.e. huge fall is being seen in all Asian markets this morning. This all-round selling is expected to have a direct impact on both the major indices of the Indian stock market today – Nifty 50 and BSE Sensex. Amidst this turmoil in the domestic market, today investors will also keep a close eye on some big primary markets i.e. new IPOs.
US-Iran war crisis: Why was there an uproar in the global market?
Due to the latest military tension between America and Iran in the Middle East, the fear of the crude oil supply chain being affected has deepened. Fearing a possible rise in crude oil prices and increase in global inflation rate, foreign institutional investors (FIIs) have started withdrawing from the markets. After the weakness seen in the American futures markets (Wall Street Futures), almost all the Asian markets including Japan’s Nikkei, South Korea’s Kospi and China’s Shanghai Composite opened in the red this morning. Market experts believe that until the international tension subsides, the market volatility (Volatility Index – India VIX) will remain like this.
What are today’s main triggers for the Indian market?
According to Dalal Street experts, there is a double crisis for Indian investors today. On one hand, weak global cues and rising crude oil prices will put pressure on the domestic currency (Rupee) and the Indian economy, while on the other hand, breaking of important technical support and resistance levels of the market can further intensify the selling. However, even in this declining phase of the market, selective buying (Stock Specific Action) can be seen in some selected sectors like banking, defense and IT stocks. Retail investors are being advised not to take any major decisions in haste and wait for the market to stabilize.
IPO market buzzing amid recession: Investors will focus on these companies
Even though Red Mark dominates the secondary market, tremendous action is going to be seen in the primary market i.e. IPO segment today. Today, IPOs of some new companies are opening for subscription, while it is the last day for closure of some already opened IPOs. Due to movement in Gray Market Premium (GMP), the shares of these companies are expected to get listing gain. In this market decline, for those investors who are avoiding investing money directly in shares, these IPOs can prove to be an excellent and safe investment option.