The war in the Middle East has completely spoiled the colors of Holi. There has been a big decline in the stock market on the day of Holi. Due to which stock market investors suffered a loss of Rs 9 lakh crore as soon as the market opened. In fact, March 3 was a holiday for the stock market due to Holi. In most areas of the country, Holi is being celebrated on 4th March i.e. Wednesday. But this celebration was completely spoiled due to the fall in the stock market. While Sensex saw a fall of 1750 points, on the other hand Nifty is trading with a fall of more than 500 points.
This is the third consecutive trading day when a big decline is being seen in the stock market. Stock market investors have suffered a loss of Rs 20 lakh crore in these trading days. However, a big decline is being seen in Asian markets. Kospi was seen trading with a decline of about 8 percent. Whereas the American stock market has also closed with a decline. The effect of which is visible in the Indian stock market.
Big fall in stock market
There is a big fall in the stock market on the day of Holi. If we look at the data, Bombay Stock Exchange’s main index Sensex was seen trading at 78,443.20 points with a decline of 1,795.65 points during the trading session. Whereas on Monday the Sensex closed at 80,238.85 points. By the way, this morning the Sensex opened at 78,528.82 points. Whereas at 9.37 am the Sensex is trading at 78,559.82 points with a fall of 1676.19 points. A similar situation is being seen in Nifty, the main index of the National Stock Exchange. Nifty also fell by about 550 points and appeared at a lower level of 24,315.45 points. However, at 9.37 am, Nifty is trading at 24,350.85 points with a fall of 515 points. However, Nifty opened at 24,388.80 points.
Main reasons for the decline of the stock market
No signs of US-Iran war abating
Tension has been rising between Iran and the US-Israel since the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei, and missiles continue to be fired in West Asia. Israel claimed on Tuesday that it had launched new attacks in Tehran and Beirut. US President Donald Trump on Monday said the war may end in the next four to five weeks, but he is “prepared for it to last much longer than that.”
Rupee at record low
The Indian rupee fell 66 paise to an all-time low of 92.15 against the US dollar in early trade on Wednesday, as the US dollar index hit a multi-month high amid rising inflation threats from the US-Iran war. A weaker rupee could accelerate the outflow of foreign capital from the Indian stock market as it signals pressure on corporate profits from higher input costs. According to Jatin Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, technically, the rupee may soon remain volatile in the range of 91.0092.00, with crude price fluctuations and geopolitical developments being the main reasons.
Crude oil at high of several months
There has been a huge increase in the prices of crude oil in the international market. On Tuesday, crude oil prices had jumped by about 10 percent. Whereas a rise of 5 percent was seen till the market closed. At present, Brent crude is trading above $ 82 per barrel in the international market, while WTI crude has climbed above $ 75 per barrel, as the increasing tension between US-Iran has disrupted the shipments.
Selling by foreign investors
Amidst rising geopolitical risks and falling Indian currency, Foreign Institutional Investors (FIIs) have started selling Indian equities again. In February, he sold Indian stocks worth Rs 6,641 crore in the cash segment, his eighth consecutive month of net selling in Indian equities. On March 2, he sold Indian stocks worth Rs 3,295.64 crore in the cash segment.
Investors suffered huge losses
Stock market investors have suffered huge losses on the day of Holi. If we look at the data, when the stock market closed on Monday, the market cap of BSE was Rs 4,56,90,693.19 crore, which was less than Rs 4,48,01,225.05 crore during the trading session. This means that stock market investors suffered a loss of Rs 9 lakh crore. The losses and profits of stock market investors are calculated from the market cap of BSE.