What is the story about?
Indian equities have opened on a negative note on Monday with the Nifty 50 index declining as much as 700 points in early trading on March 9. The index is on the verge of entering a "technical correction" phase, which means a 10% fall from the record high levels that the index had hit on January 5 this year.
The fall on Monday has already wiped out ₹12 lakh crore in investor wealth in the first few minutes of the trading session. Here are the four major factors behind the fall in Indian equities
The surge in crude oil prices is the biggest reason behind the impact on Indian markets. Rise in oil prices is a negative for Indian markets as the country is a net importer of oil. Oil prices surged nearly 30% on Monday to cross $115 per barrel mark as there appears to be no let-off in the US-Iran war.
Rising oil prices have hurt oil sensitives such as HPCL, BPCL and Indian Oil, which are down up to 6% in early trading, while IndiGo is down over 5% in early trading.
The rise in oil prices have hurt the global markets as well. Futures linked to the Dow Jones fell as much as 1,100 points as trading resumed on Sunday evening local time.
Other Asian markets have also been hit due to the sell-off, with trading on the KOSPI being brought to a halt yet again after the index fell over 8%.
A stronger US Dollar also does not bode well for the markets, particularly metal stocks. The US Dollar index is nearing levels of 100, while the rupee has opened near record low levels of over 92.20.
The fall on Monday has already wiped out ₹12 lakh crore in investor wealth in the first few minutes of the trading session. Here are the four major factors behind the fall in Indian equities
Crude Oil Surge
The surge in crude oil prices is the biggest reason behind the impact on Indian markets. Rise in oil prices is a negative for Indian markets as the country is a net importer of oil. Oil prices surged nearly 30% on Monday to cross $115 per barrel mark as there appears to be no let-off in the US-Iran war.
Rising oil prices have hurt oil sensitives such as HPCL, BPCL and Indian Oil, which are down up to 6% in early trading, while IndiGo is down over 5% in early trading.
Global Markets Sell-Off
The rise in oil prices have hurt the global markets as well. Futures linked to the Dow Jones fell as much as 1,100 points as trading resumed on Sunday evening local time.
Other Asian markets have also been hit due to the sell-off, with trading on the KOSPI being brought to a halt yet again after the index fell over 8%.
Stronger US Dollar
A stronger US Dollar also does not bode well for the markets, particularly metal stocks. The US Dollar index is nearing levels of 100, while the rupee has opened near record low levels of over 92.20.
