Indian Stock Market Plummets Over 1,750 Points Amid Middle East Tensions, Rising Oil Prices, and Regulatory Concerns
The recent decision by SEBI to tighten rules in the futures and options (F&O) market is one reason for the decline in equity markets today
The 30-share BSE Sensex fell 1,769 points, or 2.1%, closing at 82,497.
Benchmark equity indices in India closed sharply lower on Thursday.
The Sensex dropped over 1,750 points, and the Nifty50 slipped to the 25,250 mark as investors reduced their risk exposure due to escalating tensions in the Middle East. Losses across all sectors weighed heavily on the key indices.
Sharp Decline in Indices
The 30-share BSE Sensex fell 1,769 points, or 2.1%, closing at 82,497. The broader NSE Nifty dropped 546 points, or 2.12%, settling at 25,250.
The market capitalisation of all listed companies on the BSE declined by Rs 9.71 lakh crore, bringing it down to Rs 465.15 lakh crore.
Investor Concerns Rise
Investor worry increased after Iran fired missiles at Israel. This raised fears that the fighting could stop oil supplies from the area.
As a result, oil prices went up. This is a problem for countries like India that need to buy a lot of oil, as it makes their import costs higher.
Key Stocks Under Pressure
Among Sensex stocks, Reliance Industries, HDFC Bank, L&T, Axis Bank, and ICICI Bank have dragged the index down by 1,015 points. Only JSW Steel saw gains amid the broader sell-off.
Oil & Gas Sector struggle
The Nifty Oil & Gas index closed over 2.7% lower. This shows worries about the growing conflict in the Middle East.
Hindustan Petroleum, Oil India, and BPCL were the biggest losers, with their shares dropping by 5-7%.
At the same time, the fear gauge, India VIX, jumped 9.86% to reach 13.17.
Key Points to Note
1. Iran-Israel Clash
Indian stocks went down as worries about the conflict between Iran and Israel increased. Reports say that the Israeli military confirmed eight soldiers died, including a team commander, during operations in southern Lebanon.
This rise in tension follows Iranian missile attacks on Tel Aviv.
Israel's military chief has warned that they will respond strongly.
2. Rise in Crude Oil Prices
Oil prices have gone up because people are worried that growing tensions in the Middle East could disrupt supplies from major producers. Brent crude oil briefly exceeded $75 per barrel, while West Texas Intermediate reached over $72. Both types of oil have increased by nearly 5% in the last three days.
Brent crude oil prices went above $75 per barrel, while West Texas Intermediate reached over $72. Both types of oil have risen nearly 5% in the last three days.
3. SEBI Tightens F&O Measures
The recent decision by SEBI to tighten rules in the futures and options (F&O) market is one reason for the decline in equity markets today. Analysts think these new rules will limit weekly expiries to one per exchange and increase contract sizes. This may lower retail investor confidence and reduce trading volumes.
4. Concerns Over Chinese Stocks
Investors in India are worried about Chinese stocks because they haven’t been doing well recently. Last week, the Chinese government announced plans to help its economy. Experts believe this support might improve Chinese stocks. If that happens, some money could move from India to China.
