Indian Stock Market Suffers Worst Week In 4 Years, ₹20 Lakh Crore Investor Wealth Wiped Out As Nifty Falls Over 5%

Mumbai: Indian stock markets witnessed a sharp decline this week, making it the worst weekly performance in nearly four years. The Nifty 50 index dropped more than 5 percent during the week.

The last time the index had fallen this much in a single week was in June 2022. The sharp fall has created concerns among investors and market participants.

Rs 20 Lakh Crore Investor Wealth Wiped Out

Due to the heavy selling in the market, investor wealth has taken a major hit. The total market capitalisation of companies listed on the BSE has fallen by about Rs 20 lakh crore this week alone.

Since the beginning of the conflict in West Asia, the total market value of BSE-listed companies has declined by more than Rs 33 lakh crore.

Rising Oil Prices Add Pressure

One of the biggest reasons behind the market decline is the continuous rise in crude oil prices. Brent crude is currently trading close to $102 per barrel.

Despite the International Energy Agency announcing the release of 400 million barrels of oil from global reserves and the United States easing sanctions on Russian oil shipments, prices have remained high.

The ongoing conflict in West Asia between Iran and the United States has created supply concerns, which continue to support higher oil prices.

Investment bank Goldman Sachs has warned that if disruptions continue in the Strait of Hormuz, crude oil prices could rise further and even reach USD 150 per barrel.

Stronger Dollar Hurts Emerging Markets

Another factor affecting markets is the strengthening of the US dollar. The US Dollar Index has climbed above the level of 100, putting pressure on emerging markets like India.

A stronger dollar also makes commodities such as metals more expensive for global buyers. As a result, metal stocks have come under heavy selling.

The Nifty Metal index has fallen more than 4 percent on Friday and over 5 percent during the week.

Dow Futures Turn Negative

Global market sentiment also weakened after Dow futures reversed their earlier gains. The futures were trading higher by around 250 points earlier in the day but later slipped into the red.

By around 1:45 PM Indian time, Dow futures were down more than 120 points, adding to concerns in global markets.

Few Stocks Manage To Stay Positive

The Nifty index is down about 5.2 percent for the week, with only five stocks managing to stay in positive territory.

Several major stocks have been among the worst performers this week. Companies such as Eicher Motors, Mahindra & Mahindra, Larsen & Toubro, Maruti Suzuki, Tata Motors Passenger Vehicles, UltraTech Cement and Bajaj Finance have seen sharp declines.