By Admin 
Stock Market News: The impact of increasing geopolitical tension in the Middle East is clearly visible on the Indian domestic market. BSE Sensex fell by 1,579 points around 1 pm, while NIFTY 50 fell by 478 points. But, by evening the Sensex closed down by 1048 points. Whereas Nifty closed below 24900. Selling pressure was seen in almost all major sectors. Let us understand the main reasons for this decline:
1. Growing uncertainty in West Asia
The increasing tension between Iran and Israel has destabilized global markets. Recent military actions and counter-attacks have increased instability across the region, leading to fears that the conflict could widen. Experts believe that if this tension continues for a long time, it could have a direct impact on energy supply and global trade.
Amid the tension, global oil benchmark Brent Crude saw a rise of more than 7% and prices reached $ 82.40 per barrel, which is the highest level in the last several months. The rise in crude oil prices especially had an impact on the shares of oil marketing companies, paint companies and aviation sector, because their cost structure is directly linked to the crude price.
2. Selling by foreign investors
On February 27, foreign institutional investors (FIIs) made a net sale of Rs 7,536.4 crore. Due to continuous outflow of foreign capital, the market is not getting support, due to which the decline has become more rapid.
3. Sharp rise in India VIX
The nervousness of the market was also visible in the volatility index. India VIX jumped 15% to 15.78. The rise in India VIX means that investors are expecting more fluctuations in the coming days.
4. Pressure on rupee
There was pressure in the currency market also. In early trade, the rupee weakened against the US dollar and opened at 91.23. Earlier on Friday, it had closed at 91.08 per dollar with a fall of 17 paise. Main reasons for rupee’s weakness: Rising crude oil prices, selling by foreign investors and global inclination towards safe investment.
Ongoing tensions in West Asia, rising crude oil prices, selling by foreign investors and weak rupee, all these factors together have weakened the sentiment of the Indian market. The direction of the market in the coming sessions will largely depend on how soon the geopolitical situation normalizes and in which direction oil prices go.
Also read: There was panic in the stock market due to Iran war, but this stock ran fast, made huge profits to the investors.
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