PALL OF GLOOM

The intensifying crisis in the Middle East could hurt market sentiment. All eyes are on a favourable monsoon and postelection policies

- RAHUL OBEROI

WITH THE GENERAL elections well and truly underway, domestic equity markets have found themselves unexpectedly enveloped in a cloud of uncertainties originating from across the seas. The escalations of tensions in the Middle East, coupled with the rise in global crude oil prices, have heightened their anxieties, casting a pall over market sentiment.

Iran’s aerial attack on Israel dragged the benchmark equity index BSE Sensex down nearly 4% in just five trading sessions to 72,489 on April 18 from its all-time intraday high of 75,124 scaled on April 9. The 30-share index rallied nearly 25% in 2023-24.

Going ahead, analysts think that volatility will rule the roost and investors should be ready to lap up any opportunities that come their way. But, a majority of market participants believe that the expected reduction of interest rates will be delayed.