Mumbai: Stock markets fell sharply in early trade on Friday. The main indexes, Sensex and Nifty, dropped as Asian markets also showed weakness. This happened after a big rise in Brent crude oil prices. The rise in oil prices came after Israel attacked Iran’s capital, causing tension in the Middle East.
The Sensex fell by 1,337 points or 1.63 percent to 80,354. The Nifty dropped 415 points or 1.66 percent to 24,473. All the 30 companies in the Sensex were trading lower. Some of the biggest losers were Kotak Mahindra Bank, Power Grid, Adani Ports, Tata Motors, UltraTech Cement, and Asian Paints.
Brent crude oil prices jumped by 9.33 percent to USD 75.83 per barrel. Experts said that if the conflict between Israel and Iran lasts long, it could have serious effects on the economy. In the short term, markets will stay cautious because of these risks.
Asian markets were also down. South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai SSE Composite, and Hong Kong’s Hang Seng all saw losses. But US markets had ended on a positive note on Thursday.
Foreign investors sold shares worth Rs 3,831 crore on Thursday. Experts said that the recent rise in Middle East tensions caused many investors to move away from stocks.
On another sad note, an Air India plane crashed near Ahmedabad on Thursday shortly after takeoff. Out of 242 people on board, 241 died, and only one survived.
The previous day, the Sensex had also dropped by 823 points and Nifty by 253 points due to the same worries about the conflict and other market concerns.
(With PTI Inputs)
