Amidst the ongoing war between America and Iran and turmoil in the Middle East, a big fall has been recorded in the Indian stock market on the last trading day of the week i.e. Friday. A huge decline was seen in both the major indices, BSE Sensex and NSE Nifty 50. BSE Sensex fell by 1097 (1.37%) points to close at 78,918.90, while NSE Nifty 50 also fell by 315.45 (1.27%) points to close at 24,450.45.
In terms of market cap, investors suffered a loss of about ₹3 lakh crore. The main reasons behind this decline are believed to be the rise in crude oil prices, weak signals from foreign markets and heavy profit booking by investors.
Why did the stock market fall?
West Asia crisis escalates
Last weekend, America and Israel attacked Iran, in which Iran’s supreme leader Ayatollah Ali Khamenei was killed. After this, Iran retaliated and took action against the Gulf countries. Due to this, the oil supply through the Strait of Hormuz was affected.
Sharp increase in crude oil prices
After increasing tension in West Asia, crude oil prices reached above $ 80 per barrel. However, in futures trade on Friday morning, Brent crude fell 2.4% to $ 83.21 per barrel. Whereas WTI crude was trading at $ 78.54 per barrel, falling 3%.
US futures
The US stock market declined this week due to the Iran war and rising oil prices. After this, American futures remained almost stable on Friday. Futures linked to the Dow Jones Industrial Average rose 103 points, or 0.2%. Whereas S&P 500 futures increased by 0.1% and Nasdaq 100 futures also increased by 0.1%.
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