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Below the Perspective on the Market by Mr. Vinit Bolinjkar, Head of Research - Ventura

“Indian stock markets experienced a significant downturn, with the BSE Sensex falling over 650 points and the Nifty 50 dropping by 200 points. This sharp decline was primarily driven by

Geopolitical Tensions: Israel's military actions against Iran have heightened concerns over stability in the Middle East, a region crucial for global oil supply. This development has led to increased uncertainty in global markets.

Surge in Oil Prices: The conflict has resulted in a sharp rise in Brent crude oil prices, which spiked to over $75 per barrel. This surge raises concerns about inflation and increased input costs for businesses, particularly in energy-intensive sectors.

Investor Flight to Safety: In response to the heightened risks, investors have shifted their portfolios towards safer assets like gold and government bonds, leading to a sell-off in equities.

Sectoral Impact: Energy stocks, especially oil marketing companies such as BPCL, HPCL, and IOC, have been adversely affected due to concerns over rising crude prices impacting refining margins. Additionally, airline stocks have declined following a tragic Air India crash in Ahmedabad.”

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