The fourth day of the week started with a big fall in the Indian stock market. Investors sold as tensions increased again in the Middle East. The Indian market was shaken after America’s action against Iran. Meanwhile, a rise of more than 2% in crude oil prices has made investors cautious.
**How did Sensex and Nifty open?**
The Sensex opened 350 points lower at 73,614, although after some time signs of recovery were seen, reducing the loss to 268 points. Nifty also showed the same trend and opened 110 points lower at 23,104.
**Pressure on IT shares**
Along with banking and FMCG sectors, IT stocks also came under pressure today. The IT index opened at 27,888, which is lower than its previous close of 28,279. Investors were seen selling shares of big IT companies like Tech Mahindra, Infosys, HCL Tech and TCS. As a result, shares of almost all big companies were trading in the red. This trend was visible due to heavy selling in tech stocks in the US market; Shares of big companies like Nvidia, AMD, Broadcom, Microsoft, Amazon, Meta, Alphabet and Tesla were trading down.
**Asian markets are also struggling**
A downward trend was already seen in Asian markets. Japan’s Nikkei 225 fell about 2.3%, while the Topix also lost 1.9%. South Korea’s Kospi also did not fare well and fell about 4.1%. Meanwhile, selling continued in the Hong Kong market. Huge increase in crude oil prices. Crude oil prices are skyrocketing in the international market. Both Brent crude and US crude have seen a big increase of more than 2 percent. Market experts believe that if the situation in the Middle East continues like this, crude oil prices may soon reach $100 per barrel.
US inflation data warns investors
Along with tensions in the Middle East, rising inflation in the US has also shaken the Indian market. Inflation in the US was 4.2% in May – the highest level in three years. For comparison, this rate was 3.8% in April. This trend of inflation has increased the concern of investors, because it has reduced the expectations of cut in interest rates.
