The stock market is once again experiencing a significant decline. On Tuesday, both the Sensex and Nifty indices saw a sharp drop immediately after trading began. The Sensex index, comprising 30 shares from the Bombay Stock Exchange (BSE), started poorly and quickly lost over 400 points. Simultaneously, the Nifty-50 index of the National Stock Exchange (NSE) followed suit, falling by approximately 100 points.
Among the 30 major companies in the BSE Largecap segment, 26 showed a decrease in quotations. Analysts have established a direct link between the stock market decline and the tensions in the Middle East.
At the start of trading, the BSE Sensex opened at 75,970, which was lower than the previous day's closing figure of 76,132. It soon continued to fall, losing 418 points to reach 75,714. Similarly, the NSE Nifty index also showed a decline at the open. This index of 50 stocks started at 23,743 compared to the previous close of 23,779, and then the rate of decline accelerated. By the time of writing, Nifty was trading at 23,668.
Among the stocks that fell the hardest amid the general market downturn, the following can be highlighted: in the BSE Largecap category were M&M Share (down 1.40%), Bharti Airtel Share (down 1.10%), and ICICI Bank-Axis Bank, which decreased by about 1%. In the Midcap segment, the largest drop was recorded by Voltas Share (2.50%) and TI India Share (1.50%), while Godrej Properties Share (1%) also saw a decline. Among Smallcap stocks, the most noticeable drops were seen in Amber Share (1.60%), Cyient Share (1.45%), and Angel One Share (1.40%).
The main reason cited for the stock market decline on Tuesday was the tensions in the Middle East, statements from Iran and Donald Trump, as well as the subsequent rise in crude oil prices in international markets. Iran increased gas prices for its consumers, while heightened tensions in West Asia have caused the price of Brent Crude to exceed the $97 mark, increasing inflation risk. The price of WTI Crude also exceeded $93, and the cost of Murban Crude trades around $107 per barrel.