The impact of the US-Israel-Iran war is being felt across the world. The stock market has been particularly affected, and the Indian stock market is crashing continuously except for a day or two. At the start of trading on Thursday, BSE Sensex fell 978 points, while NSE Nifty fell 275 points. Since the beginning of this war, stock market investors have suffered a loss of approximately ₹ 23 lakh crore.
13 days of fighting, ₹23 lakh crore lost
Investors in Indian equities are suffering huge losses due to the ongoing war between the US, Israel and Iran. So far, Indian stock market investors have lost ₹23,00,000 crore, or about $250 billion (₹92 per dollar), even though the war has been going on for just 13 days. But during this period, except for a day or two, both the market indices, Sensex and Nifty, crashed heavily on most of the days.
Waiting for market improvement since 21 months
The Middle East war has become a big problem for the stock market investors as they have been waiting for the market to improve for the last 21 months and are continuously incurring losses. Although US President Donald Trump has promised to end the Iran war soon, he has not given any deadline. The US-Israel vs Iran war started on February 28 and has impacted the stock markets not only in India but across the world. This is because the war has spread to the Gulf countries and the Strait of Hormuz, causing massive disruption in fuel supplies.
BSE market cap decreased so much
On Thursday, the fourth trading day of the week, the market capitalization of all companies listed on the Bombay Stock Exchange (BSE) declined by Rs 22,65,831 crore since February 28. In fact, the market capitalization of BSE was recorded at ₹463.51 lakh crore on February 27, a day before the US and Israel attack on Iran, which has now fallen to ₹440.84 lakh crore. Currently, Sensex and Nifty indices are trading at the level of June 2023 only.
Experts say this war will last for a long time
Donald Trump may be claiming that the war with Iran will end soon, but analysts have warned that this war may last a long time. ICICI Securities said that as soon as crude oil prices cross the range of $90-100 per barrel, it starts having a serious impact on India’s oil import bill and indicates a sudden supply shortage due to rising geopolitical crises or other major reasons.
Hitesh Jain of Yes Securities says the economic outcome of the fight will largely depend on its timing and intensity. Prolonged conflict could keep energy prices high, increase inflation risks, and weaken emerging market currencies, which could put pressure on stock markets.