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Tezzbuzz Desk: The direct impact of increased military tension between America and Iran has been visible on the Indian stock market. As soon as the market opened on Wednesday morning, a huge fall was recorded in Sensex and Nifty. The Sensex fell by nearly 700 points, while the Nifty fell by more than 200 points. The reason behind this decline is not any big news to the domestic market, but the global tension created by the overnight air strikes between America and Iran.

The US administration has confirmed that under the leadership of Donald Trump, the US carried out several air strikes on military targets in Iran. In response, Iran also retaliated. The rising tension between the two countries created fear among investors in the global markets. This also affected the Asian markets and the selling intensified as soon as trading started in the Indian market.

Signs of weakness were visible even before the market opened. In the pre-opening session, the Sensex fell by about 540 points to the level of 76,397.24. Nifty was trading at 23,852.05, falling 203 points. At 7:38 am, GIFT Nifty futures were also at the level of 24,033.5. On Tuesday, Nifty closed at 24,055.8. Among the 30 major Sensex companies, only sunpharma The stock was seen in the green, while selling was seen in other major stocks. The US-Iran tension has had the biggest impact on the prices of crude oil. Brent crude jumped almost 2 percent 96.6 dollars per barrel Reached. This is the highest level in the last six weeks. Due to increasing tension in the Middle East, the possibility of oil supply being affected globally has increased. If the conflict prolongs, further rise in crude oil prices may be seen.

The rise in oil prices can also raise concerns for a big oil importing country like India. Expensive crude oil may increase import bills as well as put pressure on transportation and production costs. This may have an impact on the prices of petrol and diesel and many other everyday items. Due to this, the concern of investors has increased. Meanwhile, a jump has also been seen in global bond yields. Due to the rise in crude oil prices, the fear of rising inflation across the world has strengthened again. Investors fear that if inflation remains high for a long time, central banks of other countries, including the US, may slow down the pace of interest rate cuts or adopt a strict monetary stance.

In such an environment, foreign investors may move money out of emerging markets and into relatively safer assets. This may also put pressure on the Indian stock market. Especially if the US-Iran tension escalates further or the energy supply in the Middle East is affected, there is a possibility of further instability in the global markets. At present, investors are keeping an eye on the further action between the US and Iran, crude oil prices and the trend of global markets. If the tension subsides soon, then some relief may be seen in the market, but if the conflict continues for a long time, expensive oil, rising inflation and high bond yields can become a big challenge for the Indian stock market.