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Due to Iran war, there is a big decline in the Indian stock market. A sharp decline was recorded in Sensex and Nifty shortly after the market opened today. During trading, the Sensex fell by almost 1,000 points to 77,161, while the Nifty also slipped 1 percent to 23,971. Due to increased selling in the market, there was a huge decline in the wealth of investors and a decline of Rs 2 lakh crore was seen in the total market cap.
Pressure from profit booking in banking shares
A major reason for the fall in the market was profit booking in banking and finance sector shares. Selling has been seen in big stocks like HDFC Bank, ICICI Bank, Axis Bank and Bajaj Finance. The fall in these shares has directly impacted major indices like Sensex and Nifty. Along with this, weakness in big stocks like Reliance and Bharti Airtel also increased the pressure on the market.
Market environment deteriorated due to rupee weakness
Weakness in the Indian rupee also became a major reason for the market fall. The rupee reached around 92 against the dollar. Due to weakening of rupee, the confidence of foreign investors may decrease and they may withdraw money from the market. Apart from this, weak rupee also indicates rising inflation, which increases the possibility of increase in interest rates and this impacts the stock market.
Selling by foreign investors and oil prices
Another reason for increasing pressure on the stock market is the continuous selling by foreign investors. In the early days of March itself, foreign investors have sold Indian shares worth thousands of crores of rupees. Along with this, fluctuations in crude oil prices and geopolitical tension related to Iran have also increased the concern of the market. Experts say that if this tension continues for a long time, the market may be further affected.
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