Why Indian stock market is on a rollercoaster ride
The Indian stock market has been on a rollercoaster lately, mostly because of rising geopolitical tensions.
Global tensions — including recent US actions and the situation in Iran — have contributed to increased crude-oil volatility, which is hitting sectors like oil and gas here at home.
Even though Iran has relatively low total trade exposure and limited exposure to the oil trade, the uncertainty is making everyone a bit uneasy.
Still, long-term oil prices are holding steady since OPEC and the US are keeping up production.
Foreign investors are pulling money out
On the local front, things are tricky—foreign investors are pulling money out and the rupee has slipped past 92 against the dollar. The ongoing trade deal talks between the US and India aren't helping calm nerves either.
Some sectors like metals and oil are holding strong, but autos and beverages are struggling with tough competition.
All eyes now are on how things play out with Iran and what surprises might come in the upcoming Union Budget.