5 days after the stock market opens on the first trading day of the week within seconds ₹9 lakh crore of investors were lost. The deepening war in West Asia and skyrocketing prices of crude oil have created chaos on Dalal Street. The tension between Iran and America-Israel has now taken a dangerous turn, which is directly impacting the global economy as well as our and your pockets. The situation is such that Sensex and Nifty have fallen drastically and huge selling pressure is being seen all around.
Outcry in Sensex-Nifty
When the market opened on Monday morning, signs of a huge decline started appearing on the screen. By 9.21 am, the main index Sensex of Bombay Stock Exchange (BSE) fell by 2,272 points (about 2.87 percent) to the level of 76,621. Nifty of National Stock Exchange (NSE) was also in bad condition. Nifty was seen trading at the level of 23,743, falling by about 706 points (2.89 percent), which at one time was trading more than 500 points lower.
This is not a sudden decline. Earlier on Friday also, the mood of the market was very bad, when Sensex fell by about 1,097 points to 78,918 and Nifty slipped by 315 points to close at 24,450. This continuous decline is creating deep concern in the minds of common investors.
Why is the market scared?
The main reason for this huge devastation in the market is the huge geopolitical tension going on across the seven seas. The conflict between America, Israel and Iran has now reached a point where the energy supply crisis has deepened. Iran has targeted some very important infrastructure in the Persian Gulf. In response, Israel has also adopted an aggressive stance and attacked the major oil depot of Tehran.
This military confrontation has created an uproar in the markets all over the world. Due to this fear, there has been a huge jump in the prices of crude oil (Brent crude) and it has crossed the dangerous level of $ 117 per barrel. This boiling of crude oil directly invites inflation. There is an atmosphere of fear not only in India, but also in Asian markets, where a huge fall of up to 7 percent has been recorded.