Indian markets tumble as geopolitical tensions grip Sensex. The benchmark index plunged 1,100 points Friday, closing below 79,000 for the first time in ten months amid escalating West Asia conflict and global market weakness. Banks led the decline as foreign investors continued aggressive selling, withdrawing Rs 6,030 crore in a single day. Over four sessions, FPIs have pulled nearly Rs 21,600 crore from Indian equities. Market volatility spiked with India VIX surging eleven percent, while investor wealth eroded by Rs 3.2 lakh crore. Rising crude oil prices and stronger US dollar yields are pushing foreign funds toward safer assets, away from domestic stocks. Analysts warn sustained oil price increases could pressure India's inflation and twin deficits, complicating the RBI's monetary policy decisions ahead.
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