The stock market tanked by over 1.8% on Tuesday as concerns mount about the economic impact of the war amid an elusive peace deal between the United States and Iran. Investors lost more than Rs 11 lakh crore during the day.
The benchmark Sensex had fallen more than 1,450 points, or 1.9%, at the end of the session. The Nifty had fallen more than 430 points, or 1.8%. Investors had lost more than Rs 11 lakh crore during the day.
The benchmark indices fell for the fourth consecutive trading session. The stock market had recovered marginally in April after a steep fall in March.
The Indian rupee also weakened to a record low of 95.6 against the United States dollar amid elevated global oil prices and economic headwinds caused by the conflict in West Asia.
The previous all-time low of the Indian currency was 95.4, registered on May 5.
This came after the price of benchmark Brent crude increased 3.7% to 108 per barrel on Tuesday. The price of Brent was $78 per barrel on February 27, a day before the conflict started.
The India VIX index, which measures volatility in the market, spiked 3.9% on Tuesday.
Major Asian stock indices had a mixed session on Tuesday. Hong Kong’s Hang Seng index was down 0.09%, South Korea’s Kospi 2.2% and China’s Shanghai Composite 0.2%. However, Japan’s Nikkei had risen 0.5%.
On Monday, the Indian stock market tanked about 1.5% a day after Prime Minister Narendra Modi urged citizens to revive some work-from-home practices adopted during the Covid-19 pandemic to reduce fuel consumption.
Modi’s remark came as oil marketing companies face mounting pressure with global crude prices continuing to rise amid the war in West Asia.
Written by Nachiket Deuskar. Edited by Tanya Shrivastava and Neerad Pandharipande