In the last four trading sessions, the Sensex has fallen more than 2,700 points (3%). Today, it fell 700 points to a low of 75,276. Nifty 50 also did not lag behind, it saw a decline of 3% and closed at 23,618 today. The total market capitalization of companies listed on BSE has fallen from ₹473 lakh crore on May 6 to ₹462 lakh crore today. This means a loss of ₹11 lakh crore in market capitalization in just four days.
Tension between America and Iran: tug of war between hope and despair
The market mood right now is completely based on the ongoing tension between America and Iran. Despite numerous diplomatic efforts and appeals for a ceasefire, no peace agreement has yet been reached. Due to this constant uncertainty, whenever the market tries to recover, investors start booking their profits out of fear.
Crude oil crosses 100: spoiling the game
In the international market, Brent crude has remained above the $100 per barrel mark for the last two months. This is particularly bad news for India; Rising oil prices are slowing down the country’s economic growth, increasing fiscal deficit and pushing inflation to uncontrolled levels.
Historic fall in rupee
On Tuesday, the Indian rupee fell 35 paise to its all-time low of ₹95.63. Earlier this year, the rupee was near ₹90; However, its price has fallen by more than 6% since then. The weakening rupee is forcing foreign investors (FPIs) to withdraw their capital from India.
flow of foreign capital
Amid a strengthening US dollar and rising economic risks in India, foreign institutional investors (FIIs) are increasingly pulling their money out of the country and reinvesting it in safer markets, dashing any hopes of domestic market stabilization or recovery.
Fear of inflation is increasing
The rising prices of oil and dollar will have a direct impact on your pocket. The fear of increasing retail inflation has created an atmosphere of fear among investors, due to which they are avoiding taking risks.
