A man walks past Bombay Stock Exchange (BSE) building in Mumbai (AP Photo/Rafiq Maqbool)
The benchmark Nifty 50 fell 2.03 per cent to 23,902.64, while the BSE Sensex slid 2.1% to 76,570.47, as of 2:35 pm, according to data cited in a Reuters report which added that if the losses hold, this would be the biggest percentage drop for the benchmarks in more than two months. Track July 8 Iran war updates here
IndiGo stock was among those that fell the most – around 5.5 per cent – possibly due to the concerns that escalating tensions in West Asia could push up aviation fuel costs and disrupt flight operations in the region.
Why market is down today?
The sharp drop in stock market came after US President Donald Trump on Wednesday said the ceasefire with Iran was “over” as fighting flared between the Tehran and Washington.
US launch strikes on Iran on Tuesday and cited Iranian attacks on ships in the vital Strait of Hormuz as the reason for it. The strategic shipping route remains a flashpoint in the conflict, which began in late February with massive US-Israeli strikes on Iran.
Tehran insists on controlling the waterway, saying it will charge fees for passage and threatening to hit vessels that deviate from its authorised route.
“As far as I’m concerned, it’s over,” Trump said at a NATO summit in Turkey on Wednesday when asked if the truce was intact, saying “It’s just a waste of time dealing with them”.
“I’ll let our wonderful negotiators keep talking if they want, but I don’t see it. I don’t like these people,” he added.
The fighting between US and Iran was largely on pause under a fragile peace memorandum. Maritime traffic had also tentatively resumed after Washington and Tehran signed the memorandum last month, but Iran has been insisting there will be no return to pre-war arrangements, under which vessels could pass freely through the strait.
Under the 14-point US-Iran memorandum, Iran and Oman, which border Hormuz, must hold talks “to define the future administration and maritime services” in the waterway with other Gulf states.
US Central Command (CENTCOM) said on Tuesday its forces had hit with strikes over 80 targets, including Iranian air defence systems, coastal radar sites and 60 IRGC small boats.
The strikes aimed “to degrade Iran’s ability to continue attacking international commerce flowing through the international trade corridor”, it said.
Iran was quick to respond, with the Guards saying they hit dozens of US military facilities in Kuwait and Bahrain.
