After a volatile trading session, Indian indices closed with a decline of almost one percent on October 4, continuing their decline for the fifth consecutive session. This has happened after a fall of more than 2 percent in the previous session. The Sensex closed at 81,688.45, down 808.65 points or 0.98 per cent, while the Nifty closed at 25,049.85, down 200.25 points or 0.8 per cent.
Overall, the indices closed the week of September 30-October 4 with a decline of more than 4 percent after three consecutive weeks of positive returns. The recent decline in the market has been due to increasing tensions in the Middle East, where the war between Iran and Israel has intensified. Apart from this, the benchmarks have fallen by more than 5 percent from their record high level on September 27.
Apart from geopolitical concerns several other factors have contributed to the market decline, such as rising crude oil prices, regulatory changes in the F&O segment by SEBI and withdrawals by foreign institutional investors. Benchmark equity indices, Sensex and Nifty made negative starts with losses of half a per cent each in morning deals. However, the indices soon recovered about 1.5 per cent from their day's low as buying at lower levels was seen. Now the most important question arising here is whether this decline will continue next week also. Because there does not seem to be any end to the war between these two countries.
After this, the Sensex rose 1,295 points from the intra-day low to reach a high of 83,347, while the broader Nifty rose 378 points from its low to reach the day's high of 25,472.65. But during the last phase of trading, Indian indices again went into the red. The Sensex fell 1,835.64 points from the day's high to 81,532.68, while the Nifty fell 518.25 points to the day's low of 24,966.8.
