Today, on April 16, the Indian share market witnessed a decline during early trading hours. According to reports, the Sensex slipped by 300 points during the initial trading session, while the Nifty also dropped by 100 points.
Overview of Market Performance
During the initial trading hours, 26 out of the 30 stocks in the Sensex showed a red mark, indicating a decline, while 4 stocks registered gains. The Sensex started its day’s trading at 73,400 points. Similarly, the Nifty began its trading at 22,200 levels, slipping by 100 points.
Reasons for the Decline
Several factors contributed to the decline in the share market today. Firstly, tensions between Iran and Israel have escalated following the Israel-Hamas conflict, leading to geopolitical concerns. Secondly, after a rapid rally in the market, investors are booking profits, particularly in the mid and small-cap segments, which have become overvalued. Thirdly, weak signals from global markets have pulled the Indian market down, with nearly a 1% decline observed in US and other markets yesterday.
Announcement of VI’s Follow-On Public Offer (FPO)
In a bid to overcome financial crisis, Vodafone Idea (VI) has announced a Follow-On Public Offer (FPO) worth ₹18,000 crore, which will remain open from April 18 to April 22. The price band for the FPO has been set between ₹10 to ₹11 per share.
Investors can bid for 1298 shares in a lot, and if they apply at ₹11 per share, they will need to invest ₹14,278.
The market’s response to these developments will be closely watched as investors assess the impact of geopolitical tensions and corporate actions on market sentiment and performance.