Sensex crashes over 2,200 points as West Asia war escalates

Indian stock markets witnessed a severe crash as the Sensex plunged over 2200 points and Nifty fell by 687 points, down nearly 3 per cent, due to escalating conflict in West Asia. The crucial 23,000 level on Nifty was broken as markets reacted to Israeli attacks on Iran gas fields and Iranian retaliation on Gulf countries. Brent crude prices soared to nearly $110 per barrel, impacting oil marketing companies. Bank Nifty closed at 53,451, down about 1,800 points, while Fin Nifty fell nearly 1,000 points to 24,951. The Indian rupee hit a new low of 92.69 against the dollar. Foreign institutional investors are pulling out money due to the weaker rupee, though domestic investors continue investing through mutual funds. The government is implementing measures including credit line extensions and schemes to cushion MSMEs, importers and exporters. Ninety per cent of India’s LPG imports come through the Strait of Hormuz, raising energy security concerns.

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