Investors' wealth erodes by over Rs 22 lakh cr since beginning of West Asia conflict
New Delhi (PTI): Equity investors became poorer by Rs 22.40 lakh crore since the beginning of the conflict involving the US, Israel and Iran, which has rattled stock markets, driving the BSE Sensex lower by 4.6 per cent.
The US and Israel launched military strikes on Iran on February 28, killing Ayatollah Ali Khamenei, Iran's supreme leader.
Following the military offensive, Iran has carried out a wave of attacks mainly targeting Israeli and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan, and Saudi Arabia.
Brent crude, the global oil benchmark, jumped 12.82 per cent to USD 104.6 per barrel.
Since February 27, the 30-share BSE Sensex has tanked 3,721.03 points or 4.57 per cent.
The market capitalisation of BSE-listed companies dropped sharply by Rs 22,40,408.82 crore to Rs 4,41,10,262.45 crore (USD 4.78 trillion) during this time.
"Indian equity markets ended the session sharply lower after opening with a steep gap-down of nearly 3 per cent, as weak global cues and the deepening conflict in the Middle East weighed heavily on investor sentiment.
"The escalation in geopolitical risks pushed crude oil prices above the USD 100 per barrel mark and drove the Indian rupee to a record low against the US dollar, amplifying concerns around inflation and external balances," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
On Monday, the Sensex tanked 1,352.74 points or 1.71 per cent to settle at 77,566.16, registering its second day of decline. During the day, the benchmark crashed 2,494.35 points or 3.16 per cent to 76,424.55.
"Selling intensified as the Middle East conflict entered its second week with no signs of de-escalation," Vinod Nair, Head of Research, Geojit Investments Limited, said.
UltraTech Cement was the biggest loser in the Sensex pack, tumbling 5.09 per cent, followed by Maruti, Mahindra & Mahindra, State Bank of India, InterGlobe Aviation, and Adani Ports, which were among the major laggards.
In contrast, Reliance Industries, Sun Pharma, Infosys, Tech Mahindra and HCL Tech were the gainers.
The BSE smallcap select index dived 2.11 per cent and the midcap select index tanked 2.08 per cent.
All BSE sectoral indices ended lower. The BSE mid-small private banks quality tilt tumbled 4.50 per cent, PSU Bank (3.92 per cent), auto (3.89 per cent), services (3.37 per cent), Bankex (3.16 per cent), oil & gas (3.11 per cent) and Private Banks index (2.89 per cent).
A total of 3,379 stocks declined, while 972 advanced and 185 remained unchanged on the BSE.
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SP has ended contract with I-PAC due to fund constraints: Akhilesh Yadav
Lucknow (PTI): Samajwadi Party president Akhilesh Yadav on Wednesday said his party has severed its association with the Indian Political Action Committee (I-PAC) due to a lack of funds.
He dismissed speculations that the termination of contract was because of recent election results.
Addressing a press conference here, Yadav said the party had engaged I-PAC for a brief period ahead of the 2027 Uttar Pradesh Assembly elections but could not continue the arrangement.
"Yes, we had an association. They worked with us for a few months, but we are not able to continue because we do not have that kind of funding," he said.
The I-PAC is a political consultancy firm known for managing major election campaigns across the country.
Election strategist-turned-politician Prashant Kishor has also been associated with the organisation in the past and has worked with multiple parties, including the BJP and the Congress.
In a lighter vein, Yadav took a swipe at the ecosystem of political consultancies. "We thought that if we have to work with a 'winning agency', then there are several big companies."
He said that some people suggested conducting surveys, hiring another firm, keeping a social media company, and even engaging agencies for negative campaigning against other parties.
"There are one or two more companies whose names are not yet known. I can get those for you as well," Yadav said.
Yadav rejected the suggestion that the decision to end the deal was influenced by recent election outcomes in states such as West Bengal.
"There is no such thing. Do not ask questions based on baseless reports. That is not true," he said.
"This is not the reason for ending the agreement. We simply do not have enough funds. If you (the media) give us funds, we can hire another company," the former Uttar Pradesh chief minister said.
