New Delhi: Indian stock markets fell sharply on Wednesday after US President Donald Trump made a strong statement about Iran. His comments increased worries about fresh problems in the Middle East, making investors sell shares.
The Sensex fell by more than 1,900 points, while the Nifty dropped over 550 points in the last few hours of trading. Shares of big, medium and small companies all closed lower.
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Trump said he does not want to make any new deal with Iran. He also said there is no point in holding talks with the country anymore. His statement raised fears that tensions in the Middle East could grow.
The Middle East produces a large amount of the world's crude oil. If there is fear of conflict in the region, oil prices usually go up because people worry about oil supply. After Trump's remarks, Brent crude oil rose to nearly 79 dollars a barrel.
Higher oil prices are not good for India because the country buys most of its crude oil from other nations. Costlier oil can increase transport and business costs, which can affect company profits. Because of this, many investors sold their shares, leading to a sharp fall in the stock market.
Many major companies ended the day in the red. Shares of IndiGo, Maruti, HUL, Bajaj Finance, HDFC Bank, ICICI Bank, SBI, Reliance and TCS were among those that declined, adding to the market's big fall.
