Crude oil prices have risen sharply due to the war in West Asia. According to current information, the price of Brent crude has reached above 100 dollars. Due to this, a huge fall was recorded in the Indian stock market on Monday (9 March) morning. Bombay Stock Exchange’s Sensex fell over 2,300 points in early trade, while Nifty 50 slipped below the 23,800 level. Sharp selling was seen in shares of banking, infrastructure, auto and aviation sectors.
At around 9:21 am, the Sensex was down 2,344.63 points or 2.97 per cent at 76,574.27. Trading started at 77,056.75 levels and slipped to 76,573.01 during the day. Similarly, Nifty 50 also fell by 703.15 points or 2.88 percent to reach 23,747.30. Of the 50 stocks included in the index, 48 were in decline, while only two registered gains.
According to experts, this decline in the market is related to the sharp increase in crude oil prices due to the increasing conflict between America, Israel and Iran in West Asia. Globally, crude oil prices surged by nearly 20 percent, the highest level since July 2022.
Global benchmark Brent crude rose nearly 19.8 percent to $111.04 a barrel, while US benchmark West Texas Intermediate jumped more than 22 percent to $111.24 a barrel. Reductions in production by Iraq and Kuwait and fears of disruption to oil supplies through the Strait of Hormuz have increased concerns in the markets.
Big fall in global markets too:
The impact of the oil price shock was also visible on stock markets around the world. Japan’s Nikkei 225 fell nearly 7 percent, while South Korea’s KOSPI slipped as much as 8 percent. Australia’s S&P/ASX 200 fell more than 4 percent, while Indonesia’s Jakarta Composite Index also dropped nearly 4 percent.
Pressure in banking and infrastructure stocks
The most pressure was seen on banking and financial stocks on Dalal Street. Shares of State Bank fell 4.58 per cent, while ICICI Bank fell 3.77 per cent and Axis Bank fell 3.49 per cent.
Apart from this, HDFC Bank, Bajaj Finance and Bajaj Finserv also recorded a decline of more than 3 percent. Shares of infrastructure company Larsen & Toubro fell nearly 5 per cent, while Tata Steel also saw a decline of more than 5 per cent.
Aviation and auto sectors are most affected
The sharp rise in crude oil prices had a direct impact on the aviation sector. InterGlobe Aviation shares fell more than 6.6 percent in early trading. In the auto sector, shares of Maruti Suzuki fell by more than 4.5 percent, while Mahindra & Mahindra also fell by more than 3 percent.
Amidst the weak market, some energy companies saw gains. There was a rise in the shares of Oil and Natural Gas Corporation and Coal India, as these companies are expected to benefit from the rise in oil and energy prices.
Market experts say that global markets may remain volatile in the coming days due to the ongoing war in West Asia and possible disruption in energy supply. If oil prices continue to rise, it could also put pressure on global inflation and economic growth.
Also read:
India has won 5 World Cup titles so far, ‘Kerala Connection’ has been special every time!
“India has ruined cricket” Shoaib Akhtar’s jealousy comes to the fore
New Zealand gave ‘World Cup’ as a gift, Mohammad Aamir is not able to digest India’s victory!
Comments are closed.