Mumbai, March 4: The Indian stock market experienced a significant downturn on Wednesday. By 12:40 PM, the Sensex had dropped by 1,451 points, or 1.81%, settling at 78,787. The Nifty also fell by 476 points, or 1.91%, reaching 24,392.
This decline resulted in a market capitalization loss of ₹12 lakh crore for all companies listed on the Bombay Stock Exchange, bringing the total down to ₹445 lakh crore from ₹456 lakh crore on Monday.
The primary cause of this market weakness is escalating tensions due to the ongoing conflict between Israel and Iran, which has reached alarming levels. The United States and Israel have been consistently targeting Iran, while Iran retaliates by striking U.S. positions in the Middle East. Investors are increasingly concerned that this conflict could have a direct impact on the economy.
Additionally, crude oil prices have surged, hitting a four-year high. As of the time of writing, WTI crude was up by 2.86%, priced at $76.69 per barrel, while Brent crude rose by 3.16% to $83.97.
The depreciation of the rupee against the dollar has also contributed to the stock market’s decline. The rupee has fallen to an all-time low of 92.41 against the dollar.
Foreign investors’ persistent selling has been a major factor in the downturn of the Indian stock market. On Monday, foreign institutional investors (FIIs) sold shares worth ₹3,295.64 crore, while domestic institutional investors (DIIs) invested ₹8,593.87 crore.
The India VIX, which indicates market volatility, surged by 21% to reach 21. A rise in this index typically signals increased chances of market declines.
–
Leave a Comment