Amid the ongoing conflict in the Middle East, the domestic market continues to fall sharply. On Friday, the Indian stock market fell heavily for the third consecutive day. Today, BSE Sensex closed at 74,563.92 points, registering a massive fall of 1,470.50 points (1.93 per cent). Meanwhile, the NSE Nifty 50 index also closed at 23,151.10 points today, registering a sharp fall of 488.05 points (2.06 percent). It is worth noting that on Thursday also a decline of 1 percent was recorded in the market. Yesterday, the Sensex closed at 76,034.42 points—down 829.29 points (1.08 per cent)—while the Nifty closed at 23,639.15 points, down 227.70 points (0.95 per cent).
Heavy fall in L&T shares on Friday
On Friday, out of 30 companies listed on Sensex, shares of only two companies closed in the green (with profits), while shares of the remaining 28 companies closed in the red (with losses). Similarly, out of 50 companies in the Nifty 50 index, shares of only three companies closed in the green, while shares of the remaining 47 companies closed in the red. Among Sensex constituents, Hindustan Unilever shares were the top gainers today—up 1.18 per cent—followed by Bharti Airtel, up 0.33 per cent; In contrast, L&T shares witnessed the biggest decline, falling 7.52 per cent.
Due to market decline
After Iran was accused of attacks on two oil tankers, concerns over crude oil supplies have increased—in particular, fears of potential disruptions to supplies through the Strait of Hormuz. As a result, Brent crude prices reached almost $100 per barrel on Thursday, and on Friday they remained around the $100.5 level. Since India imports a large portion of its oil needs, a rise in crude oil prices increases the import bill, increases inflation, and increases the operating expenses of companies—factors that ultimately impact the stock market.
Weak signals from global markets
Stock markets around the world are under pressure due to rising tensions in West Asia. In Asia, indices like KOSPI, Nikkei 225, SSE Composite Index, and Hang Seng Index are trading with losses. US markets also remained weak; The Dow Jones fell more than 700 points and closed below 47,000 for the first time this year. Meanwhile, S&P 500 and Nasdaq Composite also recorded huge losses.
Continued selling by foreign investors
Selling by foreign investors continues in the domestic market. According to exchange data, foreign institutional investors (FIIs) sold shares worth about ₹7,049.87 crore on Thursday. So far in the month of March, foreign investors have made net sales of more than ₹39,000 crore.
Rupee at record low
On Friday, the Indian rupee weakened further against the US dollar. Rupee fell by 12 paise to reach record low of 92.37. At the interbank foreign exchange market, the rupee opened at 92.33 and fell to 92.37 during the day.
