Indian Stock Market Plunges Amidst Rupee Weakness and Market Volatility

Market Report: Indian Indices and Crude Oil Prices Decline

March 27, 2024

Benchmark indices Sensex and Nifty fell over 1% each, tracking global stocks and elevated Brent crude prices, as hopes for a resolution to the Iran war have ebbed.

The Sensex was down 847.03 points or 1.13% at 74,426.42, and the Nifty was down 252.15 points or 1.08% at 23,054.30. Trading volumes showed 749 shares advancing, 2,161 shares declining, and 195 shares unchanged.

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Key Factors Behind Market Decline

Geopolitical concerns continue to weigh on global markets, with the US delaying its deadline for Iran to reach a deal. The US government's proposal for ending the war has been met with skepticism by an Iranian official, leading to a global equity selloff.

Global Market Impact

The US equity market slumped nearly 2% on Thursday, with the 10-year U.S. Treasury yield climbing past 4.4%. Brent crude prices jumped almost 6% on mounting concerns that a near-term halt to the Iran war is unlikely. Asia's benchmark share index fell 0.8% after Wall Street gauges slid to their lowest level since September.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Technology Stocks Decline

Technology stocks declined, with Samsung Electronics Co. and SK Hynix Inc. leading losses. Taiwanese shares dropped 1.4%. US equity-index futures also pared gains to 0.3% after the Wall Street Journal reported the Pentagon is looking at sending up to 10,000 additional ground troops to the Middle East.

Crude Oil Prices

Oil prices fell in early trade on Friday but remained above $100 per barrel. Brent crude prices fell 1.7% to about $106 a barrel, after US President Donald Trump announced a 10-day extension of the pause on attacks on Iran's energy plants.

Weak Rupee

The Indian rupee hit a record low past the 94-per-dollar mark on Friday, hammered by worries that the energy supply crisis sparked by the Middle East war will drag on. The rupee fell to 94.25 per dollar, eclipsing its previous all-time low of 93.98 hit earlier this week. It has declined about 4% since the war began late last month.