Tuesday was a very disappointing day for the Indian stock market. Due to deepening tensions in West Asia, heavy selling pressure was seen on Dalal Street throughout the day. The sudden rise in crude oil prices completely spoiled the mood of the market, due to which both Sensex and Nifty registered a huge fall of up to 0.7 percent. At the end of the trading session on July 14, the Sensex fell 561.46 points and closed at 77,054.94. At the same time, Nifty also fell by 158.95 points to 24,052.05, below the important level of 24,100.
The entire market closed in red mark
The effect of this turmoil in the market was visible on almost every small and big stock. According to Tuesday’s data, only 1422 shares registered a rise in the market. On the contrary, 2632 shares caused huge losses to investors and closed in the red. There were also about 190 shares whose prices remained unchanged throughout the day.
The condition of big stocks was also very bad. Of the 50 major Nifty stocks, 39 closed with heavy losses. Pressure was clearly visible on the shares of midcap and smallcap companies. Nifty Midcap 100 index declined by 0.6 percent and Nifty Smallcap 100 index declined by 1 percent.
Investors in these sectors suffered losses
Sector wise market performance was quite weak. The condition of the real estate sector was the worst. Nifty Realty Index witnessed the biggest decline of 2 per cent. After this, loss of 1.86 per cent was recorded in public sector banks (PSU banks), 1.65 per cent in automobile sector, 1.20 per cent in banking sector and 1 per cent in IT sector.
Among the stocks included in Nifty, HCL Technologies, Shriram Finance, HDFC Life, Tata Motors and Jio Financial Services disappointed the most. However, the pharma sector provided some relief in this falling market. Nifty Pharma closed with a gain of 1.02 percent. Good growth was seen in Bharti Airtel, Apollo Hospitals, Sun Pharma and Cipla.
Middle East tension became the main reason
The main reason behind this huge fall in the market is the increasing war crisis in West Asia. The increasing conflict between America and Iran has spoiled the sentiment of the global market. According to recent reports, America has attacked Iran for the third consecutive night.
Increasing this tension further, US President Donald Trump has made a big announcement to impose a fresh ban on Iranian trade through the Strait of Hormuz. This is an important trade route, where any kind of restriction directly affects the supply of crude oil around the world. The increase in oil prices has a direct impact on the Indian economy, due to which panicked investors started selling in the market.
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