Mumbai : A wave of selling hit Dalal Street on Friday, as investors turned cautious amid lingering uncertainty around the Iran conflict despite US President Donald Trump halting strikes on Iran’s energy sites until April 6. The Sensex was down 1,692 points, or 2.25%, at 73,581.16, while the Nifty 50 fell 478 points, or 2.05%, to 22,828.
The sharp fall has wiped out over 8.3 lakh crore in investor wealth compared to the previous close, underlining the intensity of the sell-off. The move also signals something important. Markets are no longer reacting to headlines alone, but to the absence of clarity on how the situation will play out.
Trump’s pause in escalation initially raised hopes that the conflict could cool down. But there has been no real breakthrough. Iran has pushed back, and military activity in the region continues. There’s also a timing factor here. Indian markets were shut on Thursday for Ram Navami, while global markets reacted in real time.
Prices have climbed back towards the $108 per barrel mark, and that changes everything for markets like India. To ease some of that pressure, the government has cut excise duty on petrol and diesel by Rs 10 per litre. But let’s be realistic, this doesn’t solve the problem. It may help prevent fuel prices from rising further, but it does not remove the pressure coming from high global oil prices.
He added that if crude stays elevated for months, “the stress on India’s macros will be significant and markets will start pricing that in. Elevated oil prices push up inflation, hurt corporate margins and weaken the currency. The rupee has already slipped to a record low of Rs 94.15 against the US dollar.
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