Investors Lost Rs 33.68 Lakh Crore In Equity Markets Due To Ongoing War In West Asia

Indian investors have lost Rs. 33.68 lakh crore so far since the beginning of the war in West Asia. Both the Nifty and Sensex have slumped over 8 per cent each in March so far as the geopolitical conflict rattled markets. The war on Iran by the US and Israel, which began towards the end of February, has driven up crude oil prices sharply. Global energy prices also surged after Iran blocked the Strait of Hormuz. The strait, which is a narrow shipping lane located between the Persian Gulf and the Gulf of Oman, handles nearly 20 per cent of global oil and LNG supply. Since the escalation of the conflict and the disruption of the strait, crude oil prices have jumped around 42 per cent, surging above the $100 per barrel mark. On March 13, both the Sensex and Nifty indices extended their decline, falling around 2 per cent each. At the close, the Sensex fell 1,470.50 points or 1.93 percent to 74,563.92, while the Nifty declined 488.05 points or 2.06 percent to 23,151.10. Sectoral indices also ended the session in the red. The Nifty Auto, Nifty PSU banks, Nifty metals led the decline, falling around 3-4 per cent each. In the broader market, the Nifty Midcap and Nifty Smallcap indices also came under pressure, falling around 2.5 per cent each. “Index on weekly chart has formed a sizable bearish candle with a lower high and a lower low signalling continuation of the corrective decline. Index in the process slipped to 11 months low and in the process breached 100 weeks EMA and rising trendline joining the lows of CY23 and CY25. Index trends remain down as it continues to form lower high and lower low in short- and medium-term time frames. With key support on the downside to watch out for is placed around 22,700-22,400. The sharp decline has pushed daily oscillators into oversold territory, with the 14-period RSI below 30. A short-term pullback is possible, but there are no clear reversal signals yet. The index needs to start forming higher highs and higher lows on a sustained basis and close above last week's high 24,303 to signal a pause or reversal in the downtrend,” Bajaj Broking said.