Dark clouds of war have once again started looming in West Asia and this time the tension between America and Iran has completely spoiled the mood of Dalal Street. On the first trading day of the week itself, there was such a storm of heavy selling in the market that investors’ portfolios were filled with red color in a moment. The market, which was riding on the chariot of spectacular growth for some time, suddenly got such a brake that only red color was visible all around. After this fall, investors have lost Rs 8.31 lakh crore.
Highest selling in banking sector
In early trading itself, the Sensex fell by more than 1,600 points to the level of 75,944.62, which is a direct fall of 2.07 percent. On the other hand, Nifty 50 index is also trading at the level of 23,574.40, falling by 476 points. There is a huge slowdown in almost every sector of the stock market, butThe biggest impact of this decline has been on those sectors which are considered the backbone of the country’s economy. A huge fall was recorded in the leading stocks of banking, automobile and oil-gas sectors today. Talking about government banks, shares of Union Bank of India fell by more than 4 percent, while Punjab National Bank (PNB) and Canara Bank also saw a decline of more than 3 percent. Not only banks, pressure is clearly visible on the shares of Maruti Suzuki and leading two-wheeler manufacturer Eicher Motors. Among oil companies, stocks like Bharat Petroleum (BPCL) and Indian Oil (IOC) are also trading in the red.
The scene of devastation was visible in the pre-opening session itself.
The benchmark indices had fallen badly in the pre-opening session itself and the situation seemed out of control. The Sensex was panting at the level of 75,623.31 after taking a deep dive of 1,926 points or about 2.48 percent. At the same time, Nifty also increased the heartbeats of the investors by falling by a huge fall of 686 points (2.85%) to the level of 23,364.50.
Crude oil crossed 100 dollars
The main reason for this sudden turmoil in the market is the failed talks between Iran and America. But what has added fuel to the fire is Donald Trump’s latest statement, in which he has given a direct threat of US Navy intervention in the ‘Strait of Hormuz’. After Trump’s threat, Brent crude oil took a huge jump of 8 percent overnight and crossed the level of $ 100 per barrel. Let us tell you that this sea route is no less than a lifeline for the world. About 20 percent of the world’s total oil trade passes through this narrow route. Whenever there is a sound of military activity in this area, the fear of disruption in the supply of crude oil begins to haunt the entire world. Investors fear that if the conflict escalates here, oil prices may skyrocket, which will further increase the burden of inflation in an import dependent country like India. This is the reason why heavy selling pressure is being seen on Dalal Street today.