before the week A big decline is being seen in the Indian stock market these days. Sensex opened with a fall of more than 900 points in early trading. There is a big fall in Nifty also. Till 10 am, BSE Sensex is trading at 73,671.21 points, down by 575.99 points. At the same time, NSE Nifty is trading at 22,351.05 points with a weakness of 168.35 points. All-round selling is being seen in the stock market. After all, what is the reason that there has been such a huge decline in the market? Let us know.
- Israel-Iran War: Tension is increasing in the Middle East region due to the Israel-Iran war. This is the main reason for today’s decline in the Indian market.
- Strength in US Dollar: The US dollar has strengthened due to geopolitical tensions. At the same time, the rupee has weakened. The rupee declined by six paise at 83.44 against the US dollar in early trade on Monday. This has also worsened the mood of the market.
- Selling in global markets: Increasing tension in the Middle East has led to selling in the global market. The US stock market closed with a decline on Friday. In the early morning session on Monday, major Asian markets like Nikkei, Hang Seng, Kospi etc. are trading under pressure. Its effect has also been seen on the Indian market.
- Selling by foreign investors: Due to increasing tension in the world, foreign investors are withdrawing money from the Indian market. On Friday, FPIs had sold Rs 8,027 crore. This trend may continue further. Its effect is also visible in the market.
- Changes in India-Mauritius tax treaty: India and Mauritius have amended the Double Taxation Avoidance Agreement between the two countries. After this, the investment coming into India via Mauritius will now be closely monitored. There is a possibility that foreign investment will be affected by this. Its effect is also visible in the market.
- Rise in crude prices: Crude oil prices have increased after Iran’s attack on Israel. This is likely to have an impact on oil prices amidst increasing tension in the Middle East. If there is a war between the two countries, the price of Brent crude oil may cross $ 100 per barrel. Right now it has reached around $90 per barrel. Its effect is also visible on the Indian market.
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