Indian stock markets opened lower on Friday with the Sensex falling nearly 390 points and Nifty slipping below 23,200 in early trade. Weak global cues, rising bond yields, and a sharp fall in the rupee, which hit a record low of 94.15 against the US dollar, weighed on investor sentiment.
Stock Market Opens Lower
Mumbai: The Indian stock market opened on weak cues on Friday. Selling pressure was seen in the pre-opening session itself, leading to declines in major indices. The BSE Sensex fell 389.66 points, or 0.52%, to 74,883.79, while the NSE Nifty fell 132.90 points to 23,173.55, slipping below 23,200.
At 9:22 am, the BSE Sensex fell 805.22 points to 74,468.23, while the NSE Nifty fell 224.35 points to 23,082.10. Global uncertainty and the West Asian crisis are believed to be the major factors behind this decline.
The Indian rupee fell to 94.15 against the dollar for the first time, its lowest ever. The rupee's weakness has negatively impacted market sentiment, raising fears of higher import prices and rising inflation.
Russia is expected to gain significantly in the global oil market due to the Iran war. According to reports, Russia could earn approximately $760 million. Crude oil prices have risen by approximately 38% to around $100 per barrel due to the disruption in the Strait of Hormuz.
Indian airlines have reduced approximately 10% of their flights due to the Iran war. Flights to Gulf countries have been particularly affected, with three out of every four flights cancelled since February 28th. This is causing significant inconvenience to travelers.
The Nifty India Volatility Index (India VIX) has risen by approximately 6.7% to 26.30. This indicates increased uncertainty among investors about the near future, and market volatility may continue.
Finance Minister Nirmala Sitharaman has announced a reduction of ₹10 per liter in central excise duty on petrol and diesel in light of the West Asia crisis. This is expected to provide relief to consumers from rising prices.
PB Fintech's subsidiary, Paisabazaar, has received a notice under the Benami Property Transactions Act. Paisabazaar has been declared the beneficial owner in this case, which could put pressure on the company's shares.
