Trump's Strait of Hormuz move triggers market mayhem, Sensex crashes over 500 points
Mumbai/IBNS: The Indian stock market extended its losing streak on Tuesday, with benchmark indices declining sharply amid escalating tensions in the Middle East and a surge in global crude oil prices.
The BSE Sensex dropped over 500 points, or nearly 0.7 percent, to 77,070.72, while the NSE Nifty 50 slipped around 0.66 percent to 24,050.
Crude oil surge rattles markets
The latest sell-off comes after crude oil prices spiked following US President Donald Trump's announcement of a 20 percent charge on all cargo shipped through the Strait of Hormuz.
Trump said the levy would help cover the costs of securing the Strait of Hormuz, one of the world's busiest and most strategically important maritime trade routes for global oil shipments.
Geopolitical concerns hit investor sentiment
The jump in oil prices, coupled with heightened geopolitical uncertainty in the Middle East, dampened investor sentiment, triggering broad-based selling across sectors in the Indian equity market.
Higher crude prices are generally seen as negative for India, one of the world's largest oil importers, as they can widen the current account deficit, fuel inflationary pressures, and increase input costs for businesses.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
