Sensex gains over 400 points as investor wealth erodes
Sensex bounced back over 400 points on Monday after weeks of heavy losses sparked by the U.S.-Israel strikes on Iran.
Even though estimates put investor wealth erosion at about ₹31 lakh crore since late February, today's early surge hints at some renewed confidence.
Investors see current prices as a chance to buy in
After last week's steep drop, the worst since 2020, many investors see current prices as a chance to buy in, betting that most of the shock from the conflict is already behind us.
Experts say big market crashes usually happen early during global crises, and while things might stay bumpy, another huge fall isn't expected right now.
Oil prices have shot past $100 per barrel
Diplomatic talks coincided with the safe passage of two India-flagged LPG carriers through the Strait of Hormuz, easing some fears of supply disruptions.
Still, oil prices have shot past $100 per barrel, which could mean higher costs and inflation for India if tensions drag on.
For now, though, markets are showing some resilience.