Indian Stock Markets Plunge Amid Geopolitical Tensions and SEBI Regulations

Indian stock markets experience a significant decline due to geopolitical tensions, foreign investment shifts, and SEBI regulations. Amid escalating Iran-Israel conflicts and SEBI's margin tightening, experts predict further volatility. Other Asian markets show mixed performances, while US indices close with minor declines.

The Indian stock markets faced a significant decline as the Nifty fell over 4% in the past five days, with the Sensex close behind at a 4.3% drop. On Friday, Nifty opened at 25,181.90, a decrease of 0.27%, while the Sensex fell by 0.31% to 82,244.25.

Experts attribute this downturn to heightened geopolitical tensions between Iran and Israel, as well as a shift in foreign investments towards China and Hong Kong. Additionally, the SEBI circular has compounded the market's struggle. Market expert Ajay Bagga remarked on the global tensions and the rising crude oil prices, noting significant foreign institutional investor (FII) outflows from India.

Meanwhile, SEBI's initiatives on margin tightening have impacted market volumes, with predictions of a 60% effect on current trading activities. Nifty Consumer Durables led the decline in sectoral indices, falling by 0.53%, while Nifty Bank and Nifty IT also registered losses. In contrast, Hong Kong's Hang Seng saw gains, while US markets followed the downward trend.

(With inputs from agencies.)