Today the Indian stock market closed on the
occasion of Ramnavami festival. In our previous post on 14th April, in our
market's overall view, we have already indicated that the overall market
sentiment turned bearish for the short-term basis.Past three days, stock markets across the world, including
India, have been reeling due to the war situation between Iran and Israel. In
three days in this country, the Sensex has fallen by about 2014.47 points. BSE
investors lost Rs 7.93 lakh crore. Nifty has fallen by 605.90 points in these
few days. On Tuesday, the two indices stood at 72,943.68 and 22,147.90
respectively. In addition, demand for the dollar has picked up due to increased
geopolitical unrest and the resulting sell-off by investors. Which pushed up
its price. The increase was so great that the rupee hit a record low on
Tuesday. The price of the dollar stood at 83.61 rupees.17 paisa less than
Monday.
Experts believe that there is little chance of cutting interest rates due to the headwind of the price increase in America. On top of that, renewed military tensions between Israel and Iran have further complicated the situation. They say that the stock and foreign exchange markets are now looking towards West Asia. Specifically, Israel's army chief threatened to respond to nearly 300 drone strikes by Iran over the weekend. If this is true, the capital markets fear that the war will break out. Hopefully, however, some countries including the US have urged Israel not to retaliate with army.
Everyone is looking at what steps Israel takes. A part of the concerned circles says that there is little chance of stability in the capital market until the geopolitical instability subsides. However, if the situation does not deteriorate again, the market may turn around on Thursday. Investors can return to the market on the off chance that the index comes down a lot.
In the news of West Asia panicked foreign investment firms started selling shares. In the last three days, these companies have sold shares worth Rs.15,763 crore in the Indian market. But moves by Indian financial firms have saved the stock market from a bigger fall. Rs.13,144.74 crore shares were bought by domestic financial institutions including mutual funds during this period.
Share
prices of information technology companies especially fell in India on this
day. Their index fell by 2.58%. Most of the business of those companies is
abroad. Investors fear that their income may fall due to the war. However,
despite so many problems, the news of hope is the reduction of oil prices in
the international market. If there is no new conflict between Israel and Iran,
the stock market may rise slightly tomorrow Thursday. Because the index has
fallen so much, there is an opportunity to buy good shares at low prices, which
many of the investors are expected to take the opportunity.
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