Due to increasing tension between America and Iran, the stock market is seeing a decline of about one percent on Monday. Iran has claimed that it has once again closed the Strait of Hormuz. Due to which there has been an increase of 5 percent in the prices of crude oil and the crude oil of Gulf countries has reached 80 dollars. On the other hand, a decline has also been seen in the rupee. Besides, a big decline is also being seen in Asian markets.
Sensex has seen a fall of more than 700 points in the initial session. Whereas a fall of more than 210 points is seen in Nifty. This is the reason why investors have suffered a loss of about Rs 3 lakh crore as soon as the stock market opened. Except companies like TCS, HCL, NTPC and Power Grid, there is a big decline in all the stocks. Let us also tell you what kind of figures are being seen.
stock market crash
A big fall is being seen in the stock market on the first trading day of the week. If we look at the data, during the trading session the Sensex fell by 711.96 points and reached a lower level of 76,857.43 points. Whereas the Sensex opened with 76,963.35 points and closed with 77,569.39 points on Friday. On the other hand, the main index of National Stock Exchange Nifty fell by about 210 points at 24,000.20 points. Whereas at the current time i.e. 9.40 am, it was seen trading at 24,044.60 points with a fall of 140 points.
Stock market declined due to these reasons
The main reason for the decline in the stock market is the rising prices of crude oil. Brent crude futures increased by more than 4 percent to $ 79 per barrel, due to which inflation concerns have again increased in India. High oil prices are bad news for India, because India is the third largest crude oil importing country in the world. This increases the risk of inflation and puts pressure on economic growth and companies’ earnings. Apart from this, there were massive missile and drone attacks between the armies of America and Iran. On Sunday, Tehran targeted US bases in the Gulf region and said it had again closed the vital ‘Strait of Hormuz’. The index (VIX) measuring fear or instability increased by almost 10 percent to the level of 13.38, which is a sign of more uncertainty. On the other hand, the rupee is falling by 37 paise against the dollar. Besides, the effect of decline in Asian markets is also being seen.
Investors lost around Rs 3 lakh crore
Investors have also suffered huge losses due to the fall in the stock market. Investors’ losses are linked to the market cap of BSE. If the market cap of the stock market increases, it means that investors have benefited. Decrease in market cap indicates loss to investors. Let us try to understand this in terms of statistics. The market cap of BSE was around Rs 482 lakh crore on Friday, which came down to around Rs 479 lakh crore during the trading session on Monday. This means that the market cap of BSE reduced by about Rs 3 lakh crore. Which is a big loss for stock market investors.
