New Delhi, March 12 Investors' wealth has eroded by ₹23.44 lakh crore since the beginning of the conflict involving the US, Israel, and Iran, which has sent shockwaves through equity markets, dragging the BSE Sensex down by over 6%.
The US and Israel launched military strikes on Iran on February 28, killing Ayatollah Ali Khamenei, Iran's supreme leader.
Following the military offensive, Iran has carried out a series of attacks targeting Israeli and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan, and Saudi Arabia.
Global oil and gas prices surged after Iran effectively blocked the Strait of Hormuz, a narrow shipping lane between the Persian Gulf and the Gulf of Oman that handles approximately 20% of global oil and LNG (Liquefied Natural Gas).
Brent crude, the global oil benchmark, jumped 6.66% to USD 98.11 per barrel.
Since February 27, the 30-share BSE Sensex has fallen by 5,252.77 points or 6.46%.
The market capitalization of BSE-listed companies has eroded to ₹4,40,06,434.01 crore (USD 4.77 trillion) from ₹23,44,237.26 crore during this time.
"Markets remained under pressure on Thursday and continued their recent decline amid weak global cues and persistent geopolitical tensions. The lack of signs of de-escalation in the Middle East geopolitical tensions continued to unsettle global markets and push crude oil prices higher," said Ajit Mishra – SVP, Research, Religare Broking Ltd.
On Thursday, the Sensex fell by 829.29 points or 1.08% to close at 76,034.42. During the day, it plunged by 992.53 points or 1.29% to 75,871.18.
Mahindra & Mahindra was the biggest loser among the Sensex firms, falling by 4.23%, followed by Maruti, Bajaj Finance, Larsen & Toubro, UltraTech Cement, and Trent.
In contrast, NTPC, Power Grid, Tech Mahindra, HCL Tech, and Reliance Industries were the gainers.
Among BSE sectoral indices, the auto sector fell by 2.92%, followed by FMCG (1.62%), consumer discretionary (1.59%), realty (1.53%), private banks index (1.45%), and top 10 banks (1.29%).
On the other hand, utilities jumped 3.31%, followed by power (2.51%), energy (1.06%), capital goods (0.55%), oil & gas (0.52%), and metal (0.45%).
The BSE smallcap select index declined by 0.65%, and the midcap select index dipped by 0.55%.
A total of 2,516 stocks declined, while 1,713 advanced and 175 remained unchanged on the BSE.
