Indian stock markets continued to fall with sharp fluctuations on Monday amid increasing geopolitical tensions in West Asia. The market was seen trading under pressure due to weakening of risk appetite of investors. Sensex fell by more than 2300 points in pre-opening. However, as soon as the market opened, the 30-share Sensex fell 1857.34 points or 2.35% to 77,061.56. Meanwhile, the 50-share Nifty fell 519.50 points or 2.12% to 23,930.95. The rupee fell 43 paise to 92.25 against the US dollar in early trade.
Strong rise in oil prices
There has been a sharp rise in the prices of crude oil due to increasing military activities between America and Iran. There is fear in the market that strait of hormuz Oil supplies through the Gulf, which is one of the world’s most important oil transit routes, could be disrupted.
crude oil prices Highest level since July 2022 and for the first time in almost three years $100 per barrel Passed across.
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Brent crude jumped more than 20% to above $110 a barrel.
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Last week alone it included almost sharp rally of 28% Was recorded.
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Prices have reached a 52-week high.
fluctuations in gold and silver
Heavy fluctuations were also seen in precious metals during Asian trading on Monday.
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Spot gold fell 2.12% to $ 5,049 an ounce
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Spot silver fell 3.51% to $ 81.34 an ounce
Overall, gold and silver fell by about decline by 3.5% Was recorded.
Big fall in Asian markets
Due to the sharp rise in oil prices and increasing global risks, heavy selling was seen in Asian stock markets.
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Japan’s Nikkei 225 index fell 6.22% And for the first time since February 6 below 53,000 has arrived
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Topix index fell 5.27%
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South Korea’s Kospi fell 6.68%
Kospi in South Korea due to sharp instability Trading of 200 futures had to be stopped temporarily. Last week too, a huge fall was recorded in the market there, when the benchmark index was down more than 12% And a circuit breaker had to be installed.
Trump’s comments also stir the market
Meanwhile the US President donald trump described the recent surge in oil prices as temporary. He wrote on social media that Oil prices could fall sharply after Iran eliminates nuclear threatand it is a small price to pay for global security.
What will be the focus of the market going forward?
According to analysts, the direction of the market in the coming days will depend on three major factors:
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conflict situation in west asia
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trend of crude oil prices
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Risk appetite of global investors
If oil prices remain high and energy supplies are disrupted, the impact could have a deeper impact on global inflation, interest rates and stock markets.