MUMBAI: On the day the month-long war in West Asia ended, Dalal Street witnessed one of the most brutal sell-offs since the conflict began on February 28. During Friday’s session, with heavyweight Reliance Industries down 4.6%, the index closed 1,690 points or 2.3% lower at 73,583 points.Market participants said the collapse in RIL’s share price that came on the back of the government imposing an unexpected tax on petroleum products exporters, the rupee’s fall to a record low against the dollar, rising bond yields and strong foreign fund selling, all due to the war in West Asia, led to stocks falling on Friday.
Sensex tanks 1690 points
The sell-off left investors about Rs 9 lakh crore poorer with the BSE’s market capitalization now at Rs 422.2 crore, stock exchange data showed. Foreign funds were again the major sellers of stocks with net outflow standing at Rs 4,367 crore, BSE data showed.
Since the war between the US, Israel and Iran began, the index has lost just over 7,700 points or 9.5% while investors have become poorer by about 41.4 million rupees. During the same period, foreign portfolio investors (FPIs) earned a little over Rs 1.1 lakh crore from the domestic stock market, data from NSDL and BSE showed.
reconnaissance
How concerned are you about the impact of the war in West Asia on the Indian stock market?
According to Vinod Nair of Geojit Investments, Indian stocks ended lower after a volatile session, as rising bond yields coupled with negative cues from Western markets and a mixed Asian performance kept investors on edge. Nair feels that near-term market sentiment remains fragile amid geopolitical risks and potential earnings cuts due to supply shocks.