Stock Market Crash: Sensex Sinks 1,200 Points; Nifty Hits Three-Week Low — Key Factors At Play
The NSE India Volatility Index or the fear gauge surged 14% to 15.98 shortly after open.
The NSE Nifty 50 and BSE Sensex slumped at the open, tracking a decline in shares across the globe as geopolitical tensions once again came into focus. Geopolitical tensions rose after Israel attcked Iran's strategic location which caused the death of several commanders and scientists.
Israel has declared a state of emergency on anticipation of a retaliatory attack from the Iran. Iran's Supreme Leader Ayatollah Ali Khamenei said that they country will respond, as reported by Bloomberg.
On domestic font, a deadly plane crash in Ahmedabad which claimed 241 lives weighed on investors' sentiment. Prime Minister Narendra Modi is visiting the site, while a relief work is going on.
Air India plane crash is one of the deadliest crash in recent aviation history.
The NSE India Volatility Index or the fear gauge surged 14% to 15.98 shortly after open. The index was trading 8.21% higher at 15.15 as of 9:39 a.m.
The Nifty 50 index fell as much as 1.67% to 24,473, the lowest level since May 22. The Sensex declined 1.64% to 80,354.59, the lowest level since May 9.
The indices were trading 1.02% and 1.05% down, respectively as of 9:40 a.m.
Global Cues: S&P 500 & Nasdaq 100 Futures Down
US futures fell sharply in the Asia session after Israel launched air strikes targeting strategic places in Iran. The attack raised concern about a potential war in the West Asia, which fueled the risk-off sentiment worldwide.
Traders pulled their money out of the riskier assets like equities and flock to the safe-haven assets like US Treasury and gold.
The benchmark yield on the US 10-year Treasury Note settled 6 basis points lower at 4.15% on Thursday. However, it rose sharply in early trade on Friday to trade at 4.33% as of 9:29 a.m.
Gold futures hit a two-month high. It rose 1.73% to $3,444.48 an ounce so far today. It was trading 1.30% higher at $3,446.96.
Oil Prices Surges Over 13% On Israel-Iran Tension
Oil prices in the international markets advanced as traders flock to the safe-haven assets after geopolitical tension rose again following Israel's air strikes in Iran.
Israel Prime Minister Benjamin Netanyahu said that in the attacks targeted military, and nuclear program sites, as per Bloomberg report.
The attacks claimed lives of several commanders and scientists, Iran said. Supreme Leader Ayatollah Ali Khamenei said they will deliver a severe response, Bloomberg reported.
Brent crude August future contract surged 13.8% to $78.50 a barrel, the highest level since Jan 27. It was trading 8.72% higher at $75.36 a barrel as of 9:32 a.m.
