As the war between the United States and Iran rages in the Middle East and crude oil prices continue to surge, India’s stock markets on Monday plummeted nearly 3 per cent in early trade, extending last week’s losses.
As of 9.20 AM, the Sensex lost 2,333 points (2.96 per cent) to reach 76,585, and the Nifty plunged 686 points (2.81 per cent) to reach 23,764. Main broad-cap indices Nifty Midcap 100 and Nifty Smallcap 100 slipped 3.28 per cent, and 3.37 per cent, respectively.
Investors reportedly lost Rs 12 lakh crore in wealth as most sectoral indices traded in the red, with the Nifty PSU Bank leading the losses, down 5.32 per cent. Nifty private bank, auto, and metal were among the top losers, down 3.41 per cent, 3.98 per cent, and 3.39 per cent, respectively.
The benchmark indices, however, recovered some losses with Sensex closing at 77,566, down 1352 points or 1.71 per cent. Nifty also recovered to close at 24,028, down 422 points or 1.73 per cent.
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The crash is attributed to the weak global cues amid skyrocketing crude oil prices. The crude has crossed USD 110 per barrel as the US-Iran conflict disrupted the key shipping route through the Strait of Hormuz.
In other Asian markets, Japan’s Nikkei declined 6.98 per cent, and Hong Kong’s Hang Seng Index dropped 2.51 per cent. China’s Shanghai index eased 1.09 per cent, Shenzhen plummeted 2.06 per cent, and South Korea’s Kospi lost 7.36 per cent.
The markets in the United States also ended in the red overnight, with the Nasdaq losing 1.59 per cent. The S&P 500 dipped 1.33 per cent, and the Dow Jones declined 0.95 per cent.