Mumbai : Because of the tensions involving the United States, Israel, and Iran, the stock market saw a major decline today, March 9. The Sensex fell by 1,353 points (1.71%) to close at 77,566.
Meanwhile, the Nifty also dropped by 422 points (1.73%), closing at 24,028. Heavy selling was seen today in banking, auto, metal, energy, and FMCG stocks.
During geopolitical tensions and war-like situations, there is a risk of rising inflation. This can reduce companies’ profits. As a result, investors start selling their shares and move their money to safer investments, which leads to a decline in the market.
Brent crude rose by more than 25% today, reaching $116 per barrel. Since the war began on February 28, crude oil prices have increased by about 60% in the past 10 days. Earlier, during the 2022 Russia–Ukraine war, crude oil had crossed $100 per barrel.
Experts believe that oil prices could rise to $150 per barrel. This could affect petrol and diesel prices in India, which may increase by ₹5 to ₹6 per litre. However, the Indian government says that the country has sufficient oil supplies.