TheNifty and the Sensexopened lower and begun the trading day on a weak note. The Sensex tumbled over 500 points and opened at 74,507.73 and the Nifty declined over 150 points and opened at 23,415.95. All major sectoral indices have opened in the red.

West Asia War & AI Disruption Concerns

Founder & Head of Research at Equinomics Research, G. Chokkalingam told Timesnownews.com, "Renewed attacks in West Asia and renewed AI Disruption worries are causing domestic markets to fall. These concerns are likely to lead to continuity in FII outflows in the short term. Domestic market turnaround depends solely on conflicts in West Asia. If resolution is found out the same will lead to oil price to crash and the same will help in boosting domestic macroeconomic parameters like trade balance, forex reserves , rupee exchange rate and earnings of corporate which use oil or oil derivative as inputs. It would also help on containing inflation.

This war cannot continue for a long period. Iran economy is in crisis. US also facing rising inflation, slowing down GDP growth and growing debt. Thus resolution to conflict is very much possible and that will help domestic market to recover significantly."

While most under indices plunged in early trade, the Nifty Volatility Index also spiked as much as 9 percent thus reflecting a sharp uptick in uncertainty and the Nifty IT Index was the top loser which cracked as much as 3.5% in early trade.

On Tuesday, both the benchmark indices, theSensex and the Niftyended the trading day in the green. The Sensex gained 382.50 points and closed at 74,649.84, while the Nifty gained 100.95 points and ended the trading day at 23,483.55. Nifty IT shares jumped in the trading session with Infosys' shares gaining over 5% at close and TCS' shares gaining over 6% at close.

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