Mumbai: Indian stock markets saw strong selling pressure on Friday as rising tensions in West Asia increased concerns about global oil supply. Due to this uncertainty, investors became cautious and reduced their risk exposure, pushing the market to the day’s lowest levels.
Around 3 pm, the Nifty50 index was down by 514.80 points or 2.1 percent, trading at 23,143.20. At the same time, the Sensex fell 1,470 .19 points or 1.93 percent to 74,570.23.
The sharp decline also increased fear in the market. The Nifty Volatility Index (VIX), which measures market anxiety, jumped 6.32 percent to 22.88, showing that investors are becoming more worried about future market movements.
Investor Wealth Drops By Rs 9.44 Lakh Crore
The heavy selling led to a sharp fall in the total market value of companies listed on the BSE. The overall market capitalisation dropped from Rs 439.72 lakh crore to Rs 430.28 lakh crore during Friday’s trading session.
This means that investors lost around Rs 9.44 lakh crore in wealth in just one day.
Among the biggest losers in the Nifty index were Hindalco, Tata Steel, Larsen & Toubro and Tata Motors Passenger Vehicles.
Weekly Decline Deepens
If the entire week is considered, the market fall has been even sharper. The Sensex has declined about 4.5 percent during the week, while the Nifty has fallen around 4.8 percent.
This is likely to be the biggest weekly fall for the Indian stock market since December 2024.
Rising Oil Prices Add Pressure
One of the main reasons for the fall in markets is the sharp rise in crude oil prices. After Iran reportedly attacked two oil tankers, concerns about supply disruptions increased.
As a result, Brent crude prices moved close to $100 per barrel. Higher oil prices are negative for India because the country imports most of its crude oil. Expensive oil increases inflation and raises the import bill.
Weak Global Signals
Global markets also showed weakness due to rising geopolitical tensions. Major Asian markets such as Kospi, Nikkei, Shanghai and Hang Seng traded lower.
In the United States, the Dow Jones index fell by more than 700 points, reflecting global investor concerns.
Foreign Investors Continue Selling
Foreign institutional investors (FIIs) have also been selling Indian equities continuously. On Thursday alone, FIIs sold shares worth Rs 7,049.87 crore.
So far in March, their total selling has crossed Rs 39,000 crore.
Rupee Hits Record Low
The Indian rupee also weakened sharply against the US dollar. It touched a record low of 92.37 per dollar.
A weaker rupee makes imports more expensive and adds pressure on the economy, which also affects stock market sentiment.
Banking And Auto Stocks Under Pressure
Banking and auto stocks also witnessed strong selling. The Bank Nifty index fell around 1.7 percent to near 54,000 levels.
Stocks such as Union Bank, Punjab National Bank and Canara Bank declined between 2 percent and 3 percent.
Market Volatility Increases
Market volatility has increased sharply. The India VIX, often called the fear gauge, rose nearly 6 percent to around 22.66, showing growing uncertainty among investors.
Technical Outlook
From a technical perspective, analysts believe the Nifty could fall further towards the 23,090 level.
However, for the market to regain strength, the index will need to move above the 23,670 level.
