Israel-Iran conflict wipes out ₹25 lakh crore in investor wealth
India's stock market just took a huge hit: over ₹25 lakh crore in investor wealth vanished as the Israel-Iran conflict ramped up.
The BSE's value dropped from ₹463.9 lakh crore to below ₹440 lakh crore, with rising oil prices (Brent crude now above $78 a barrel) making things worse.
Foreign investors pulled out ₹21,000 crore from Indian stocks
If you're investing or thinking about it, here's why this matters:
Foreign investors pulled out ₹21,000 crore from Indian stocks in just a few days, even though they put some money into IPOs. IPO fundraising also slowed.
Meanwhile, the Nifty index is down 1,100 points, or about 4.31%, from the pre-war close (25,550 to 24,450), and the rupee hit a record low of 92 to the dollar, so your money isn't stretching as far.
Rising oil prices could hurt India
India relies heavily on Middle Eastern oil (a significant share comes from the Gulf, with nearly half of India's crude imports transiting the Strait of Hormuz), so when prices spike during conflicts, inflation and growth take a hit.
Experts like Goldman Sachs warn that if oil keeps climbing, company earnings could drop and sectors like energy and travel could struggle even more.
If things drag on, big names say Nifty could fall further and everyday costs might keep rising.