look news india
The direct impact of increasing geopolitical tensions on the global front is being seen on the Indian stock market. Due to the new dispute and tension arising between America and Iran, an atmosphere of tremendous selling has been created in the domestic stock market. Due to this tension, both the major indices were seen trading in the red during the week’s trading session. The Bombay Stock Exchange (BSE) index Sensex appeared to be under pressure with a fall of about 200 points, while the National Stock Exchange (NSE) Nifty also slipped and reached very close to the mental level of 23,100.
America and Iran dispute spoiled the mood of the market
According to market experts, the sudden increase in tension between America and Iran in the Middle East has weakened investor sentiment globally. Due to the ongoing deadlock between the two countries, the possibility of rise in crude oil prices in the international market has increased, which is a matter of great concern for a big oil importing country like India. This is the reason why foreign institutional investors (FIIs) as well as domestic investors thought it better to book profits and turn to safer investment options instead of making aggressive purchases in the market.
These sectors were most affected due to all-round selling
During this fall in the market, selling pressure was seen in almost all major sectors. Maximum weakness was recorded in shares of auto, metal, and IT sectors. Banking and financial stocks definitely tried to control the market in early trading, but they too could not stay ahead of the global cues for long. A declining trend was also seen in midcap and smallcap indices, which makes it clear that short-term risk has increased significantly in the market at this time and investors are avoiding taking any kind of risk.
Rising prices of crude oil and close attention of experts
Amidst this entire development, the commotion in the commodity market has also intensified. Brent crude prices continue to fluctuate due to fear of the crude oil supply chain being affected. Market analysts believe that until there are clear signs of easing of tension between America and Iran, similar volatility may be seen in the Indian stock market. In the coming days, investors will keep an eye on the statements of the US Federal Reserve and global inflation data, which will play an important role in deciding the next direction of the market.
