The ongoing war between Iran and Israel has shaken markets globally, and its ripple effects are being felt strongly in India. On Thursday, the Indian stock market faced a significant crash, with both the Sensex and Nifty witnessing substantial drops. The Sensex plummeted 1,770 points, while the Nifty fell by 546 points, marking one of the worst market falls in recent times. Major Indian billionaires like Mukesh Ambani and Gautam Adani saw their wealth erode due to the sharp fall in stock prices of their companies.
In this blog, we will explore how the Iran-Israel war has impacted the Indian stock market, causing a steep decline in the wealth of India’s richest men, Mukesh Ambani and Gautam Adani.
Stock Market Impact: Sensex & Nifty Nosedive
Thursday’s trading session was a rough one for Indian investors, with both the BSE Sensex and NSE Nifty taking a massive hit due to geopolitical tensions stemming from the Iran-Israel conflict. The markets opened sharply lower, with the Sensex crashing 995 points within minutes. By the end of the day, it had lost a staggering 1,770 points, closing at 82,497.10—down by 2.10%. This sharp decline wiped out over ₹10 lakh crore in market capitalization.
On the other hand, the Nifty followed a similar trend, falling by 546.56 points to close at 25,250, representing a 2.12% dip. The overall market sentiment was negative, with all major indices witnessing deep cuts due to rising tensions in the Middle East.
Key Highlights:
- Sensex fell 1,770 points, closing at 82,497.
- Nifty dropped 546 points, ending the day at 25,250.
- BSE’s market capitalization fell by over ₹10 lakh crore.
Mukesh Ambani’s Wealth Takes a Hit
One of the biggest casualties of the stock market crash was Mukesh Ambani, Chairman of Reliance Industries. The stock of Reliance Industries dropped by 3.95%, closing at ₹2,813.95. This sharp decline in Reliance’s stock resulted in a significant reduction in its market cap, which now stands at ₹19.05 lakh crore.
As a result of this stock slide, Mukesh Ambani’s personal wealth also saw a considerable drop. According to the Bloomberg Billionaires Index, Ambani’s net worth fell by $4.29 billion (approximately ₹36,000 crore) in just 24 hours.
This isn’t the first time this week that Reliance Industries has seen a drop in its stock price. Earlier, on September 30, the stock fell by over 3%, further compounding the losses. Ambani’s total net worth now stands at $107 billion, which has pushed him two spots lower on the global billionaires’ list, now ranking at 14th.
Gautam Adani’s Wealth Shrinks as Stocks Plummet
It wasn’t just Mukesh Ambani who bore the brunt of the market turmoil. Gautam Adani, Chairman of the Adani Group, also saw his wealth shrink significantly due to the stock market crash. Shares of Adani Green Energy and Adani Ports fell sharply. Adani Green Energy dropped 4.09%, closing at ₹1,807.80, while Adani Ports slipped by nearly 3%, closing at ₹1,426.05.
As a result of the stock slide, Gautam Adani’s net worth fell by $2.93 billion (roughly ₹24,600 crore), reducing his total wealth to $100 billion. Adani, who was once ranked 14th on the global billionaires list, has now fallen to the 17th position.
Key Highlights:
- Adani Green Energy fell by 4.09%.
- Adani Ports dropped by 3%.
- Gautam Adani’s wealth declined by ₹24,600 crore, dropping his net worth to $100 billion.
Broader Economic Consequences: What Lies Ahead?
The Iran-Israel war has heightened uncertainty in global markets, and India is no exception. The Middle East plays a crucial role in the global economy, especially in oil production. Any escalation in conflict between these nations could disrupt oil supplies, leading to further volatility in the markets. Investors are currently grappling with concerns about inflation, rising crude prices, and potential sanctions, all of which could adversely impact not just Indian markets but the global economy as a whole.
Experts believe that the market could remain volatile in the short term, with the possibility of further corrections if the geopolitical situation worsens. However, some market analysts are optimistic about long-term recovery, given the overall strength of the Indian economy and its resilience to external shocks.
Conclusion: A Rocky Road Ahead
The impact of the Iran-Israel war has been profound, with the Indian stock market seeing a significant downturn and the wealth of India’s two richest men, Mukesh Ambani and Gautam Adani, shrinking dramatically. As the war continues, markets are expected to remain volatile, making it a challenging time for investors. While the immediate future may seem uncertain, long-term prospects for the Indian economy remain strong.
Investor Tip: With markets in turmoil, it is crucial for investors to exercise caution, diversify their portfolios, and stay informed about global events that could impact their investments.