Crude oil price jumps: Due to the war between Iran-Israel, heavy stress in the middle East is directly affecting the global market. The attack on three Iran’s three nuclear installations by the US has deepened this entire crisis. There is a possibility that now it may be stretched and longer. Jung has shook the global market. The threat of Iran’s major transport route of crude oil has increased the possibility of crude oil on the seventh sky due to the threat of closure of Hormuz Strait.

Crude oil on five months record high

The softening that was being seen in crude oil prices is breaking all the records. Crude oil has now reached a five -month record level to $ 80 per barrel. Experts believe that Iran will also have to close a hormuj strait in the answer that Iran will take as action. If this happens, it will increase the price of crude oil worldwide. If we talk about the impact on India, then not only the trade deficit will increase, but the risk of inflation will also increase in the country.

About 20 percent of global oil is transported through the Hormuz Strait. Oil prices have seen a jump of 11 percent within a week. Iran of OPEC Plus is the third largest oil producer country. It has a stake on about one third of the oil production that is produced around the world. In such a situation, Golman Sachs has expressed apprehension that if this route of Hormun is closed, then the price of crude oil can reach up to $ 100 per barrel.

What will be the effect?

Talk about India, it imports about ninety percent of its needs. The world’s third largest oil import is the country and out of 55 lakh barrels of oil daily, about 15 to 20 lakh oil comes to India via this hormuz strait. In such a situation, closing it can hurt the Indian economy.

However, in the past, Petrol Minister Hardeep Singh Puri had given assurance that the situation is being reviewed and every possible step will be taken by the government to ensure the supply of fuel.

Also read: Iran-Israel stress caused Indian market, 700 points slip Sensex, Nifty also declines

There is a lot of uproar in the Indian stock markets. Sensex and Nifty’s week’s trick has confused many market experts. Small and medium stocks have seen a significant decline after six days. According to the market experts, there are three major reasons behind this uproar of the stock market. So let us know which factors are those who continue to be upset.

1- Concern about global tariffs:

Actually, US President Donald Trump has indicated to install new tariffs on the automobile sector. Due to which the sentiment of investors has suffered a big setback. The first Trump had indicated that not all the new tariffs would be implemented from April 2. This recently brought some relief to the market.

The market was hoping that perhaps reciperoching tax will not be imposed on India from April 2. But, uncertainty remains about this till now. In a report by news agency Reuters, a White House official made it clear that President Trump is standing on his policy. Due to this, there is a situation of confusion among investors and they are avoiding new stakes till clarity about the trade policy.

2- Profit after boom

The stock markets had seen the biggest rise in the last four years. This fast was seen on Monday. After which the profits of investors were seen. Due to selling pressure, 11 out of 13 sectorial index out of 13 went into red mark.

Only the Nifty, private bank and IT sector were successful in keeping themselves in the green mark. Equity head of Kotak Securities Shrikant Chauhan said that the structure of the market remains positive in the short term. But due to more purchases, selling is being done at high levels.

3- Weak global signal

The third and last reason is weak global signal. The impact of weakness in the global market, especially Asian markets, also appeared on the Indian stock markets. Market experts say that the market is currently looking towards global signals for its move, but how durable the market will be, it will depend on which companies have corporate quarterly consequences and how is the situation of consumption in the domestic market.

Significantly, due to weak results of companies, the stock market had seen a decline for the last several months recently. Due to this, market experts started finding the valuation of companies high. Till the bounce in corporate income, there will be doubt about any speed in the market being durable. Anyway, there is a saying that the share prices are a slave of its earnings in the long term.

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