Stock market today: A day after logging strong gains of more than 1% each, domestic market benchmarks, the Sensex and the Nifty 50, resumed their downward March on Friday, March 6, due to profit booking amid persisting concerns over the US-Iran war, crude oil price spike, and heavy foreign capital outflow.
The Senex crashed nearly 700 points, or almost 1%, to an intraday low of 79,346, while the Nifty 50 fell to 24,575 during the session, falling nearly 200 points, or about 1%.
The overall market capitalisation of BSE-listed firms slipped to ₹452 lakh crore from ₹453 lakh crore in the previous session, resulting in a loss of ₹1 lakh crore for investors in a single session.
Why is the Indian stock market falling?
1. The ongoing US-Iran war
The market’s rise in the previous session was more of a short-covering rally after the recent fall, amid reports that Iran was making conditional offers to the US. Later, some media reports claimed that Tehran had made no offer to Washington, raising concerns that the could last longer.
The combined attack of the US and Israel on Iran entered its seventh day on Friday. US President Donald Trump has reportedly said he has no time limits for ending the war.
2. Oil prices remain elevated
Brent Crude eased slightly on Friday but continued trading near $85 per barrel mark, keeping investors worried about its impact on India’s fiscal health, inflation trajectory and monetary easing cycle.
For India, which imports more than 90% of its , every $1 increase in the price of a barrel of crude oil raises the country’s import bill by around ₹16,000 crore, according to economists.
Global brokerage has downgraded the Indian stock market to equal weight in its latest reshuffle, highlighting that the conflict in the Middle East could disrupt supply chains if oil flows through the Strait of Hormuz fail to recover.
Meanwhile, on Friday, US Treasury Secretary Scott Bessent said Washington would allow a 30-day waiver for Indian refiners to purchase stranded at sea.
(This is a developing story. Please check back for fresh updates.)
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