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Iran-Israel War Shocks Indian Markets, Sensex Plummets
15 Mar
Summary
- Sensex and Nifty crashed around 8% each in March.
- The war in the Middle East has caused crude oil prices to surge.
- Approximately Rs 34 lakh crore wiped off from market capitalization.
Indian stock markets have experienced a sharp decline in March, with both the Sensex and Nifty indices plummeting by approximately 8%. This significant fall is attributed to heightened geopolitical tensions and the prolonged closure of the Strait of Hormuz amidst the ongoing conflict between Iran and Israel-US.
On Friday, markets saw a significant crash, with the Sensex falling nearly 1,500 points and the Nifty dropping below 23,200, marking the third consecutive session of losses. The total market capitalization of BSE-listed companies has shrunk by about Rs 34 lakh crore since the start of the month.
Crude oil prices surged above $100 as the conflict escalated, with concerns about the Strait of Hormuz remaining shut. The Indian rupee also hit new all-time lows, and foreign institutional investors continued their selling trend.
Analysts suggest that market volatility is expected to continue in the near term. The direction of the market will likely be influenced by developments in the West Asia conflict, crude oil price movements, and foreign fund flows. A de-escalation in tensions could provide relief, while further escalation may keep markets under pressure.
