Markets rise on Navratri, but Israel-Iran crisis increases traders’ worries

New Delhi| The festive season has started in India with Navratri. After Navratri, due to big festivals like Dussehra, Diwali, Bhaiya Dooj, there is expected to be a continuous increase in the purchase of gold, vehicles, clothes, daily consumption i.e. FMCG goods and electronic equipment in the market. This will strengthen the entire economy. But meanwhile, the market is frightened by the fear of intensifying the war between Israel and Iran. During the business session of October 3, BSE Sensex, the major benchmark index of the domestic stock market, fell by about 1800 points. This defrauded investors of around Rs 11 lakh crore.

If the Israel-Iran crisis deepens further in the coming times, it may create chaos in the entire market. This will also increase the risk of a huge rise in oil prices and rising inflation. This will have a direct impact on the pockets of the common man. Before this crisis, the Indian market has been performing consistently for quite some time. Sales of electric vehicles remain bullish. The way central and state governments are promoting electric vehicles, their sales are being promoted by giving tax exemption on them.

According to market analysts, due to the arrival of Diwali, the sales of house construction related items and ready houses and flats are also expected to remain bullish. The boom in the real estate sector is proof that investors are still considering it as the safest medium to invest in the market. But it is expected to remain bullish even for customers with real need for homes.

If the Israel-Iran crisis increases, it will have a direct impact on the prices of crude oil. Within the first three days, crude oil prices have increased by up to four percent. India buys about 40 percent of its total oil requirement from Russia and about 20 percent from Iraq, so even after the crisis increases, India’s total oil supply is not expected to be affected much, but if its prices increase in the international market, it will directly affect India and oil prices may increase in India also.

If this happens then its direct impact will be in the form of inflation. Prices of common goods may increase due to expensive petrol and diesel. Due to this, the market expectations due to the festive season may get the current of inflation. This news will not be true from any point of view for the world recovering from recession.