The Indian stock market on Wednesday continued its slide amid concerns related to the conflict in West Asia.
As of 12 pm, the benchmark Sensex index had fallen more than 1,400 points or 1.8%. The Nifty had also fallen by 1.9% below the 24,400-mark.
The market had crashed on Monday when it opened for the first time since the conflict began. It was closed on Tuesday because of the Hindu festival of Holi.
The India VIX index, which measures volatility in the market, had spiked around 9% at 12pm on Wednesday.
Major Asian stock indices also fell on Wednesday morning. Hong Kong’s Hang Seng index had plummeted about 2.4% as of 12 pm Indian time.
While Japan’s Nikkei tanked 3.7%, South Korea’s Kospi fell 12.2%.
Rupee at record low
As of 12 pm, the Indian rupee had sunk to 92.2 against the United States dollar amid concerns that rising crude prices may lead to higher inflation, Bloomberg reported. This was a fall of about 0.7% from the previous close.
The price of benchmark Brent crude had jumped to $82 per barrel on Wednesday from $73 per barrel on Friday, the day before the conflict began.
On Saturday, Israel and the US launched a joint operation to “degrade the capabilities” of the Iranian government.
The attacks came amid tensions between the three countries over Tehran’s nuclear programme. Washington acts as a guarantor of Israel’s security. Israel has been claiming that Iran is close to obtaining a nuclear weapon, which could alter the regional security balance.
Tehran has long maintained that its nuclear programme is for civilian purposes.
Iran retaliated by striking Israel and US military bases in the region, and targeting major cities in other Gulf countries and some ships.
US President Donald Trump on Tuesday said it was “too late” for Iran to seek negotiations.
On Monday, Iran claimed that the Strait of Hormuz was “closed” for shipping traffic, warning that any vessel attempting to pass through the strategic waterway would be set on fire.
In measures viewed as an attempt to assuage concerns about access to oil, Trump on Tuesday said that he had ordered the country’s International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf.
The US Navy will escort oil tankers through the Strait of Hormuz, he added.
The narrow waterbody connects the Gulf to the Arabian Sea. About 20% of global petroleum liquids consumption traverses the maritime chokepoint.
