The country's stock market crashed again in the final trading session of this week. Sensex and Nifty50 opened nearly 1 percent lower than the last closing. As time progressed, the main indices of the country's two stock exchanges fell further.
By 11 AM, Sensex had already dropped 1102 points or 1.46 percent. As a result, Sensex fell to 74,170 points. Nifty50 declined 335 points or 1.44 percent on this day. Consequently, the National Stock Exchange's main index dropped below 23,000. Additionally, small cap and mid cap indices are also down by more than 2 percent.
Also Read | Mid-air scare: Air India London flight turns back after 7 hours due to technical snag
Geopolitical tensions and rising oil prices
Along with Sensex and Nifty50, most sectoral indices have been down since Friday morning. Only the Nifty IT index gained points. All other sectoral indices are down. In Nifty, sectoral indices like PSU Bank, Media, Realty, Auto, Defence, Tourism, Bank, Financial Services have declined the most. Sectoral indices like Energy, Oil and Gas, Metal have also fallen by more than 1 percent.
Multiple reasons behind the fall in the country's stock market have emerged in analysts' analysis. Foremost among these is geopolitical instability. Although efforts to end the Iran war began this week, they have not been very fruitful. As a result, markets in various countries around the world have become unstable again. Since morning, Japan and South Korea's markets have been down. In the last trading session, America's stock market was also down. Market experts believe this impact has also affected Dalal Street.
The rupee's decline continues on Friday as well. This morning, the Indian rupee crossed the 94 mark against the US dollar. As a result, the rupee's value has reached a record low again. This has also impacted the stock market.
Also Read | Are petrol and LPG supplies at risk? Govt issues fresh clarification
As soon as the war started in West Asia, fuel oil prices skyrocketed. A few days ago, oil prices had fallen below $100. On Friday, crude oil prices exceeded $108 per barrel. This trend has also had a negative impact on the market. Additionally, continuous outflow of foreign investment continues. In March alone, foreign investors withdrew investments worth 1.23 lakh crore rupees. The combined effect of all these factors has made Dalal Street uncontrollable on Friday.
(Ei Samay Online does not provide investment advice anywhere. Investment and trading in stock markets or any field involves risk. Proper study and expert advice are recommended beforehand. This news is published for educational purposes and awareness.)
