look news india
The war between Iran and Israel is taking new turns every day. On October 1, Iran took a step forward and launched a missile attack on Israel. In such a situation, it is now less likely that this fire will be limited to Israel, Iran and Lebanon, rather its impact will be seen in the entire West Asia. Its effect can be seen on the country's stock market and inflation.
Impact on inflation in India
The biggest impact of the Iran-Israel war can be seen on inflation in India. This is because India imports more than 80 percent of its petroleum needs. Petrol and diesel have a direct relation with inflation in India, as we are still heavily dependent on road transport for transportation. In such a situation, if petroleum prices increase due to Iran-Israel war, then the prices of vegetables, milk and all other essential commodities will increase in India.
Iran's attack on Israel on Tuesday also affected the prices of crude oil. A jump of 4 percent has been seen in their prices. Brent futures rose 3.5 percent to $74.2 a barrel. Whereas America West Texas Intermediate crude oil has reached $ 70.7 per barrel with an increase of $ 2.54 or 3.7 percent.
Will there be a cut in repo rate?
After the Iran-Israel war, it now remains to be seen whether a decision to cut the repo rate is taken in the Monetary Policy Committee meeting of RBI to be held next week or not. At present RBI is facing not one but many challenges. The US Federal Reserve last month cut interest rates, its second cut after a $142 billion bailout package for China's economy and now amid fears of rising crude oil prices and inflation due to the Iran-Israel war.
RBI had to take a big decision!
In such a situation, RBI has had to take a decision to prevent the inflation which was controlled with great difficulty from getting out of control again. But the problem will not end here as RBI will have to strike a balance to boost demand in the country in the coming festive season. At present the demand situation in the country is such that Rs. There are cars worth more than Rs 70,000 crore lying in dealer inventory. Car companies have offered huge discounts on cars.
decline in international market
Like any other market in the world, the Indian stock market is also affected by international events. Recently there has been a decline in the international market. The S&P has fallen 1.4 percent over the past three weeks. There is softness in the IT sector. Apple, Nvidia and Microsoft shares have seen a big decline. According to a report, the impact of the Iran-Israel war has been that the prices of crude oil and gold have increased, while the stock market has softened.
What will be the impact on the stock market?
The Iran-Israel war will also impact the Indian market, as it will disrupt the flow of FII money into the market. Apart from this, crude oil price index, dollar index and high prices of gold will also affect the market movement. Not only this, due to the bailout package given by China for the economy during this period, the stock market there is seeing a boom, due to which FII money may move towards China instead of Indian market. Due to which the possibility of correction has started in the Indian stock market.