The Indian stock market has seen a sharp decline recently. Let's explore the key factors driving this crash, including the Israel-Iran conflict and rising US dollar rates.
1
The ongoing war between Israel and Iran has heightened geopolitical uncertainty. Investors fear this could disrupt oil supplies and destabilize the region, leading to a sell-off in stocks.
2
The US dollar is strengthening against other currencies, making it more attractive for investors. Additionally, rising US Treasury yields make stocks less appealing in comparison.
3
Foreign Institutional Investors (FIIs) are pulling money out of the Indian market due to global uncertainties. This selling pressure, combined with a weakening Indian rupee, fuels the stock market decline.
4
Crude oil prices have hit a six-month high, raising concerns about inflation and pressuring local currencies. This economic strain discourages investors and contributes to the market fall.
5
The crash isn't limited to large-cap stocks. The Nifty 50, Sensex, and Bank Nifty indices have all experienced significant losses. Even small-cap and mid-cap stocks are down considerably.