The stock market opened on Thursday amid heavy selling pressure. The impact of the sudden rise in crude oil prices and increasing global tension is clearly visible on the mood of investors. Shortly after opening, the Sensex fell nearly 800 points. Nifty also fell more than 200 points below the level of 24,200. Bank Nifty also fell by more than 500 points and reached around 56,600.
Oil prices rise, tension continues
Crude oil prices rose 3% to cross $102 per barrel amid rising tensions in the Strait of Hormuz. Despite the ceasefire extension, Iran claims to have seized two ships, while the US blockade is still in place. This situation has created continued uncertainty in energy markets. The impact of the surge in crude oil prices is clearly visible in early market signals; GIFT Nifty is trading around 24,140, down about 240 points. Dow Futures are also trading down 250 points. However, markets in Japan and Korea are trading at their highest levels ever, indicating underlying strength in Asian markets.
Record rise in American markets
US markets witnessed a strong rally, driven by the extension of the ceasefire and strong corporate earnings. The Nasdaq rose 400 points to a new record high, while the S&P 500 also closed at a record high. Dow also rose 340 points to close at the highest level in 8 weeks.
confusion about deadlines; White House issued statement
The White House has denied reports that there was no fixed time limit of 3 to 5 days for the ceasefire. The White House said that President Trump has not yet set any specific deadline and that he is satisfied with the ongoing US blockade of the Strait of Hormuz.
Both FII and DII sold; the pressure increased
During the market slide yesterday, both foreign and domestic investors sold. Foreign institutional investors (FIIs) sold heavily to the tune of ₹7,267 crore—including ₹2,078 crore in the cash segment. Meanwhile, DIIs also sold shares worth ₹1,048 crore.
Huge rise in gold and silver
A lot of movement was also seen in the commodity market. Silver rose by ₹3,700 to close at ₹2,48,400, while gold rose by almost ₹1,000 to close at ₹1,52,700.