Share Market Crash: Market declined for the second day due to these reasons, know what experts say?

Business Desk- Share Market Crash: On Friday, May 8, the stock market witnessed a decline for the second consecutive day. The market is trading in the red due to reasons like renewed hostility between America and Iran and the latest rise in crude oil prices. On Friday, Sensex opened in negative territory at 77,631.94.

It fell 595.83 points from its previous closing price to reach a low of 77,248.69. Similarly, Nifty also opened down at 24,233.65. After that it fell by 188.25 points and touched the low of 24,138.40.

Last day on Thursday, the Sensex had closed at 77,844.52, with a decline of 114 points or 0.15 percent. Nifty closed at 24,326.65, registering a slight decline of 4.30 points or 0.02 percent.

BSE Midcap Select index gained 1.40 percent, while Smallcap index gained 1.09 percent. Let us look at the main reasons for the fall in the market on Friday…

increasing tension in the middle east

The renewed hostilities between the US and Iran have jeopardized the already fragile ceasefire agreement. Such fears have arisen that the situation may become serious once again. Iran has accused America of violating the ceasefire, while US President Donald Trump has said that the ceasefire is still in force.

crude oil prices

Renewed tensions in the Middle East have dashed hopes of progress toward reopening the Strait of Hormuz, a vital sea route for oil and gas transport. As a result, crude oil prices have increased once again.

According to Reuters, Brent crude futures rose $1.41, or 1.41 percent, to $101.47 a barrel. West Texas Intermediate (WTI) US crude oil futures rose $1.12, or 1.18 percent, to $95.93 a barrel. The rising prices of crude oil are further increasing the fear of rising inflation.

weak global markets

Weak trends in global markets have also weakened investor confidence. American markets closed with a decline on Thursday. A decline was also seen in European markets. Apart from India, other Asian markets were also trading with losses on Friday. The Hang Seng index fell more than 1 percent, while the KOSPI and Taiwan Weighted Index both declined 0.7 percent.

FII selling

Foreign institutional investors (FIIs) are continuously selling shares in the Indian market. According to stock market data, FIIs remained net sellers on Thursday also. He sold shares worth Rs 340.89 crore. This continuous selling pressure from FIIs is further weakening the market sentiment.

India VIX surge

India VIX An index that measures stock market volatility. It increased by more than 3 percent to reach 17.12. The increase in this index is a sign of increasing uncertainty among investors, which may further increase volatility in the equity markets.