The country's stock market has been gripped by decline in the last three trading sessions of the week. After Wednesday and Thursday, Sensex and Nifty50 witnessed major falls on Friday as well.
Both benchmark indices opened at lower points on Friday compared to the last closing. As the day progressed, the magnitude of decline also increased. At 10:45 AM, Sensex fell by 850 points or 1.09 percent. Nifty50 declined by 0.95 percent or 230 points. Due to this fall, Nifty50 has again dropped below 24,000. Sensex has also fallen below 77,000. Along with this, mid-cap and small-cap indices are also down. All sectoral indices have remained in the red since Friday morning.
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According to experts, instability is primarily the main reason behind this decline in the stock market. Uncertainty has emerged regarding whether the peace agreement between Iran and America will be successful at all. Trump has instructed the US Navy to shoot and destroy any boat seen laying mines in the Strait of Hormuz. This could further escalate unrest in Hormuz. Iran has also issued warnings of retaliation if America attacks. Experts believe all these threats and counter-threats are pushing the situation toward complexity, which is impacting the market.
Rising crude prices and a weakening rupee add to pressure on equities
This unrest in Hormuz has again increased oil prices. Last week, oil prices had dropped to around $90. This week it has risen again, with Brent crude reaching $106 per barrel. Crude oil prices have increased by nearly 18 percent this week. Experts say this impact has also affected India's market.
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Fresh pressure has been created on the rupee's value as well. The rupee's exchange rate against the US dollar has again crossed the 94 mark. In this environment, foreign investment has started moving away from India again. Experts indicate that the combined impact of all these factors has made Sensex and Nifty50 bearish since Friday morning.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
