Indian Equity Markets Decline Amid Renewed Iran-US Tensions
Sensex, Nifty fall as renewed Iran-US conflict clouds market sentiment
Business StandardImage: Business Standard
Indian equity markets fell on Friday due to escalating tensions between Iran and the US, which clouded the outlook for a resolution. The benchmark Sensex dropped 516 points to close at 77,328, while the Nifty 50 fell 151.50 points to 24,176.15. The conflict has raised oil prices, impacting inflation and economic growth in India.
- 01Sensex fell by 516 points, closing at 77,328.
- 02Nifty 50 declined by 151.50 points, ending at 24,176.15.
- 03Total market capitalisation of BSE-listed firms decreased by ₹1.5 trillion.
- 04Brent crude oil prices hovered around $100 per barrel, impacting inflation.
- 05Analysts have downgraded Indian equities due to the conflict's effects on oil prices.
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Indian equity markets experienced a downturn on Friday, with the benchmark Sensex closing at 77,328, down 516 points or 0.7%, and the Nifty 50 at 24,176.15, a decline of 151.50 points or 0.6%. This decline came amid renewed hostilities between Iran and the United States, which have muddled hopes for a near-term resolution to the conflict. The total market capitalisation of BSE-listed firms fell by ₹1.5 trillion (approximately $18 billion USD) to ₹473.5 trillion. Reports indicated that clashes occurred near the Strait of Hormuz, a crucial passage for global oil, pushing Brent crude oil prices to around $99.86 per barrel. The ongoing tensions threaten the fragile ceasefire and have led to multiple brokerages downgrading Indian equities due to the potential impact on oil prices and inflation. Analysts noted that market sentiment remains heavily influenced by developments in the conflict, with immediate support for the Nifty placed in the 24,000-23,950 range. Investors are still seeking opportunities in corporate earnings despite the current volatility.
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The rise in oil prices due to the Iran-US conflict could lead to increased inflation in India, affecting consumer prices and corporate earnings.
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