US-Iran war wipes ₹34L crore off Indian markets
What's the story
The ongoing conflict in West Asia has triggered a massive sell-off in Indian stock markets, wiping out an estimated ₹34 lakh crore of investor wealth. The Sensex alone has plummeted over 5,250 points or nearly 6.5%, on the back of rising crude oil prices and a depreciating rupee. On Friday, the Sensex crashed 1,471 points to close at 74,564 while Nifty fell by 488 points to finish at 23,151.
Market dynamics
Foreign investors pull out ₹10,717 crore in single day
The market slump was further aggravated by margin calls and traders' reluctance to hold positions over the weekend. This led 28 of the 30 Sensex stocks to end in the red. Foreign investors also pulled out ₹10,717 crore in a single day, marking the largest single-day exit since early last year.
Economic implications
Rupee hits record low
The West Asia conflict has pushed crude oil prices above $100 a barrel, a multi-year high. The situation has also weakened the rupee to an all-time low, prompting foreign funds to withdraw money from India at a pace not seen in over a year. On Friday, the Indian rupee (INR) hit a record low of 92.48 against the dollar.