Share market bled between Iran-Israel Jung, millions of crores of investors drowned

In the Indian Stock Market, a huge upheaval was seen on 13 June Friday. Large index like Sensex and Nifty closed down with a decline after day-long fluctuations. The Sensex fell 573 points to 81,118.60 and the Nifty fell 170 points to close at 24,718.60.

Initially, both index had fallen by about 1.7 percent, but some recovery was done by the end of the day. BSE midcap and smallcap index also closed slightly. The total valuation of the market declined by about Rs 2.4 lakh crore to Rs 447.2 lakh crore in a day.

The stock market fell due to these 5 major reasons

1. Israel-Iran conflict

The biggest reason is that Israeli’s attack on Iran is believed to be. The Israeli Air Force targeted Iran’s nuclear sites, missile factories and military bases. Prime Minister Netanyahu described it as a ‘heart on the heart of Iran’s nuclear program’ and indicated that this operation could last for several days. This struggle has scared global investors and its impact on the Indian market was also clearly seen.

2. Rowse in crude oil prices

After the attack on Iran, there was a tremendous rise in crude oil prices in the international market. The prices of WTI and Brent crude increased by more than 10 percent. India, which is a big oil importing country in the world, suffers directly. Rising oil prices not only increase the government’s expenses but also air to inflation.

3. Race towards safe-hevan assets

In the midst of geopolitical tensions, investors withdrew money from the stock market and turned to safe investments. The demand for gold, US dollars and bonds increased. In India gold priceThis recorded a rise of 2 per cent, while the US dollar and bonds also strengthened. When investors avoid risk, the decline in the stock market becomes perfect.

4. Rupee broken, impact on foreign investment

The Indian rupee opened at 86.25 against the US dollar on Friday, which is a decline of 73 paise over the previous day. This is believed to be the biggest decline of one day after May 8. If the rupee is weak then imports are expensive, inflation increases and India’s appeal for foreign investors decreases.

5. Doubt on America-China trade deal

Although US President Donald Trump said that there has been a trade deal between the US and China, but the market was expecting more than this. The conditions and conditions of the deal are not clear and this uncertainty has also weakened the market sentiment.

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Also read: On the other hand, Israel attacked Iran, shares of shipping companies became rockets here; Why did this boom come?