Hi, you’re listening to ETMarkets Radio. I am Neha Vashishth – your host. Welcome to a brand-new episode of ET Market Watch. Let’s get to it.
Indian stock markets plunged, reversing early gains due to escalating India-Pakistan tensions following a terror attack in Kashmir. But why? Let’s break it down in 5 points
1. Geopolitical Shock
The terror attack in Kashmir that killed 26 tourists has rattled investors.
India-Pak tensions are flaring, diplomatic ties are downgraded, and risk sentiment is sinking.
2. Sensex Tanks
The Sensex crashed 1,100+ points intraday, dropping below 78,700. Later, Sensex recovered and closed over 588 points. The Nifty50? Below 23,900 by late morning. However, it closed over the 24K mark. Nearly ₹8.8 lakh crore in market cap wiped out!
3. Financials Hit Hard
Banks are bleeding.
Axis Bank led the fall after posting weaker Q4 profits.
SBI, ICICI, HDFC Bank—were all in the red.
4. Valuations & Fatigue
Markets rallied hard last week—Nifty was up 8.6% in 7 days.
But that rally? Now facing profit booking and valuation worries.
as per analysts -Overbought signals triggered a technical cooldown.
5. Q4 Earnings Miss the Mark
HUL missed profit estimates. Axis Bank’s profit dipped.
IT giants like Infosys, Wipro? Weak guidance ahead.
That’s dragging the earnings sentiment down.
Analysts say the Nifty’s stuck between 24,000 and 24,500 — a decision zone now.
Bottom line?
Rising tensions, stretched valuations, weak earnings = Market caution.
Keep an eye on what’s happening around and stay with us for more.
