Why Share Market Fall Today: Iran’s missile attack on Israel, fear of a big retaliation by Israel, or SEBI’s new rules.. what is the reason for the market falling today? This is the question in the minds of crores of investors in the Indian stock market at this time. The market opened with a huge fall today. The Sensex opened at 83,002.09, down 1264 points. Both the major indices have seen a huge fall in the early trade. At 10:35 am, the Sensex was seen trading at 83,396, down 1.03 percent or 869 points. At the same time, the Nifty was seen trading at 25,531, down 1.03 percent or 265 points. Due to this fall, investors have lost about 6 lakh crore rupees in the market. Let us know what is the reason behind this chaos in the market.
Iran–Israel Conflict
Stock market expert Dr Ravi Singh told India TV that the main reason behind this big fall in the Indian stock market today is the war-like situation between Iran and Israel. According to reports, the Israeli army has confirmed the death of 8 soldiers including a team commander during ground operations in southern Lebanon. Earlier on Tuesday night, Iran attacked several Israeli cities with about 200 missiles. After this, a strong retaliation can be made by Israel. These situations have created great instability in the Middle East.
Hike in crude oil prices
Since the tension in the Middle East has increased, the price of crude oil has increased significantly. Due to tension in the Middle East, supply from major producers of crude oil may be threatened. After Iran’s missile attack, Brent crude reached $ 75 per barrel. At the same time, WTI crude reached $ 72 per barrel. If Israel attacks any oil installation in Iran, then there will be a huge jump in the price of crude oil. This will be bad news for an oil-importing country like India. Investors in the stock market are also worried about this.
SEBI tightened F&O rules
The market today reacted to the recent decision of market regulator SEBI to tighten the rules of the Futures and Options (F&O) segment. According to Dr. Ravi, these rules include limiting weekly expiry to one per exchange and increasing the contract size. This may lead to a decline in trading volume.
Foreign investors sell-off
Investors in India are worried about the surge in Chinese stocks. Dr Ravi said that Chris Wood of Jefferies has reduced his weightage in India by 1% and increased his weightage in China by 2%. After the Chinese government announced economic stimulus measures last week, analysts have predicted a continued rally in Chinese stocks, which could lead to an outflow of funds from India. The SSE Composite Index rose 8% on Tuesday and has risen more than 15% in the past week. As a result, foreign institutional investors have withdrawn Rs 15,370 crore from Indian equities in the last two trading sessions. Dr Ravi said that there has been a big sell-off from foreign investors. FIIs have also sold Rs 5579 crore in cash on Tuesday.