Geopolitical tensions reignite market volatility as Iran closes Strait of Hormuz. Indian markets face fresh headwinds Monday after last week's gains, with the Sensex and Nifty up 1.3% and broader indices advancing further. However, renewed US-Iran tensions have pushed oil prices back up, threatening the rupee which may weaken 30-35 paise against the dollar. Traders expect the currency to slip below 93 as crude climbs. The market's uptrend faces significant hurdles if geopolitical tensions escalate further. Crude prices remain the primary driver, with Brent crude having plunged 9% to $90.38 when ceasefire hopes emerged Friday, before rising again. RBI intervention through direct dollar supply to oil companies may help stabilize the rupee. Diplomatic talks continue with ceasefire deadline approaching April 22, but volatility is expected to persist until clarity emerges.
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