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 are fears in the market that oil supplies through the Strait of Hormuz, one of the world’s most important oil transit routes, could be disrupted. Crude oil prices reached their highest level since July 2022 and crossed $ 100 per barrel for the first time in almost three years. Brent crude jumped more than 20% to reach above $ 110 per barrel. Last week alone, it A sharp rally of 28% was recorded. Prices have reached 52-week high.
fluctuations in gold and silver
Heavy fluctuations were also seen in precious metals during Asian trading on Monday. Spot gold fell 2.12% to $5,049 an ounce Spot silver fell 3.51% to $81.34 an ounce Overall, gold and silver fell by about 3.5% as investors adjusted positions amid geopolitical tensions.
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. Japan’s Nikkei 225 index fell 6.22% and fell below 53,000 for the first time since February 6. Topix index slipped 5.27%. South Korea’s Kospi fell 6.68%. Trading of Kospi 200 futures in South Korea was temporarily halted due to high volatility. Had to stop. Last week also there was a huge fall in the market, when the benchmark index fell by more than 12% and the circuit breaker had to be applied.
Trump’s comments also stir the market
Meanwhile, US President Donald Trump described the recent rise in oil prices as temporary. He wrote on social media that oil prices could fall sharply after Iran eliminates the nuclear threat, and this is a small price to pay for global security.
According to analysts, the direction of the market in the coming days will depend on three major factors:
Conflict situation in West Asia. Trend of crude oil prices. 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.