Crude Stocks Crash: Crude became expensive by 50% in 5 days, huge fall in oil sensitive stocks including IndiGo, Asian Paints – Market

There was a big fall in these shares today

Indian Oil Corporation: 5%

Stock market sentiment deteriorated badly

Today, amid the Iran war and rising crude prices, the stock market sentiment also deteriorated badly. Sensex fell by more than 2400 points, while Nifty fell by more than 700 points and reached near 23,700. More than 2,600 shares fell in NSE, while only about 537 shares rose.

India VIX : jumped 22%

Meanwhile, market fluctuations also increased rapidly. India VIX increased by more than 22%, reaching the level of 24, which shows that investors are quite nervous and worried. The market is currently trying to understand the impact of increased crude oil prices and increasing political tension in the world.

Experts believe that if crude prices remain high for a long time, the sectors whose expenditure is more dependent on fuel and petrochemicals may remain under pressure in the future. Also, fluctuations in the entire stock market may continue for some time.

Strait of Hormuz increased tension

Under normal circumstances, about 20% of the world’s total oil supply i.e. about 15 million barrels per day passes through this route. But due to the war, the movement of oil tankers in this area has almost come to a standstill. Shipping companies have also become alert due to the threat of Iranian missile and drone attacks.

Fear of production halting

Due to the impact of the war, oil supply and production of many Gulf countries is also being affected. Iraq, Kuwait and the UAE have reduced oil production to some extent due to the drop in exports as storage tanks are filling up rapidly.

Disclaimer: This article is for information only and is based on fluctuations in stocks due to crude prices. This is not any buy or sell advice. There are risks in the market, so take expert advice at your level before investing.