The stock market is currently trading under pressure. Markets witnessed a sharp decline on Friday as the global environment remained negative and geopolitical tensions showed no signs of easing. Meanwhile, there are fears that there may be another big fall in the Indian stock market on Monday. There are three main indicators behind this assessment.
US stock market decline
The primary indicator is the global markets, which saw heavy selling last night. Compared to Thursday, US markets fell sharply on Friday night. The Dow Jones Industrial Average fell 793.47 points (-1.73%) to 45,166.64. The S&P 500 fell 112 points (1.73%) to 6,424. Currently, Dow futures are indicating a decline of 900 points—or about 2 percent. As a result, it is likely to have an impact on the Indian market on Monday.
Rise in crude oil prices
There is a continuously increasing trend in the prices of crude oil. Brent crude oil was trading below $100 a barrel on Wednesday; However, within just two days there has been a huge surge in oil prices. The price has now crossed the level of $112 per barrel. By Friday evening, it was up 4.22% to $112.570 per barrel. WTI crude oil rose 5.46% to $99.640 a barrel. This surge indicates huge pressure on the market. Apart from this, natural gas prices have also seen an increase. In the international commodity market, gasoline prices rose 3.83% to $3.2501.
rupee and dollar
The Indian Rupee is rapidly weakening against the US Dollar. The conflict between Iran and the US has increased tensions in the Middle East, costing more dollars to import oil and gas and disrupting export activities. Also, foreign investors are continuously selling in the Indian market. In the month of March alone, foreign institutional investors (FIIs) sold assets worth more than ₹1 lakh crore. As a result, the rupee is now close to the 95 level and is touching its all-time low almost every day. When the markets open on Monday, fresh pressure may be seen, which will impact the Indian stock market.
Huge decline in Indian market
There was a huge fall in the Indian stock market on Friday. The Sensex fell 1,690 points—or 2.25%—to close at 73,583, while the Nifty fell 486 points—or 2.09%—to 22,819. Investors suffered a loss of ₹9 lakh crore amid this fall. It is noteworthy that Donald Trump has given Iran 10 additional days to reopen the Strait of Hormuz. Additionally, he has stated that he will refrain from any attacks on Iran’s energy infrastructure until 6 April. He claimed that Iran is, in effect, “begging” to reach a deal. He added, “We are in good talks regarding a potential deal.”
