Why Share Market Fall Today : Iran’s missile attack on Israel, fear of a major counterattack by Israel or SEBI’s new rules.. What is the reason for the market fall today? This is the question in the minds of crores of investors of the Indian stock market at this time. The market opened today with a huge fall. Sensex opened 1264 points down at 83,002.09. There has been a huge decline in both the major indices in early trading. At 10:35 am, the Sensex was seen trading at 83,396, down 1.03 per cent or 869 points. At the same time, Nifty was seen trading at 25,531, falling 1.03 percent or 265 points. Due to this fall, about Rs 6 lakh crore of investors have been lost 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 the huge decline seen 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 one of its team commanders, during ground operations in southern Lebanon. Earlier on Tuesday night, Iran had attacked several cities of Israel with about 200 missiles. After this, a strong counterattack can be launched from Israel. These situations have created great instability in the Middle East.
Increase in crude oil prices
Crude oil prices have increased significantly since tensions increased in the Middle East. Tension in the Middle East could pose a threat to supplies from major producers of crude oil. After Iran’s missile attack, Brent crude had reached $ 75 per barrel. At the same time, WTI crude reached $ 72 per barrel. If Israel attacks any oil installation in Iran, 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
There has been a reaction in the market today on the recent decision by market regulator SEBI to tighten the rules of the Future 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.
Selling by foreign investors
Investors in India are worried about the rise in Chinese stocks. Dr. Ravi told that Chris Wood of Jefferies has reduced his weightage on India by 1% and increased his weightage on China by 2%. Analysts have predicted a continued rise in Chinese stocks after the Chinese government announced economic stimulus measures last week, which could lead to an outflow of funds from India. The SSE Composite index rose 8% on Tuesday and has gained more than 15% in the past week. As a result, foreign institutional investors have pulled out Rs 15,370 crore from Indian equities in the last two trading sessions. Dr. Ravi said that huge selling has been seen from foreign investors. FIIs also sold Rs 5579 crore in cash on Tuesday.
