The Indian stock market opened rapidly on Monday (June 23) in the first trading session of the week amid a decline in global markets. Amidst the Israeli-Iran war, America’s entry also saw a recession in Asian markets and it also affected the Indian stock market.
What are the signs of global markets?
The Asian markets declined on Monday after the US and Iran claimed to have attacked three nuclear sites. This increased the possibility of widespread conflict in the Middle East and oil prices jumped. Brent crude rose 2.62 percent to $ 79.06 per barrel. While West Texas Intermediate (WTI) increased by 2.75 percent to $ 75.89 per barrel. Oil prices have been rising in recent weeks amid growing geopolitical stress in the region. Japan’s Nikkei index fell 0.74 percent and the broad subject index fell 0.64 percent. Kospi fell 1.22 percent and ASX 200 0.76 percent. The Asian markets recorded a decline in US share futures during early business hours. Dow Jones futures declined by 0.3 percent. While S&P 500 and Nasdaq 100 futures fell by 0.3 percent and 0.4 percent respectively.
Shopping by foreign investors
On the institutional activity front, foreign institutional investors (FIIs) bought shares worth ₹ 7,704.37 crore. At the same time, domestic institutional investors (DIIs) sold shares worth ₹ 3,657.7 crore on 20 June.
Iran can close the hormuz drainage
There is a concern that Iran can close the hormuz strait. About 20% of global oil and gas flows through it. This has increased the possibility of disrupting supply. Goldman Sachs has cited the risk to global energy supply amid these concerns and said that it will boost oil and natural gas prices.
