Stock Market: The stock market could fall another 10% from here if... Read the expert's warning.

News Topical, Digital Desk : The Iran crisis is causing havoc in the stock market. Domestic markets, along with markets worldwide, are trading with sharp declines. The Sensex fell 5.5% in the week, its biggest weekly decline since May 2020. The Nifty 50 also fell 5.3% during this period. However, experts are warning investors to prepare for worse conditions ahead. There are fears that if the Strait of Hormuz remains closed for some more time, the market could fall further.

What is the expert's opinion?

While he added that the likelihood of such a situation is low, investors should be mentally prepared for such risks, as escalating tensions in West Asia are impacting global energy supplies and financial markets. He stated that the most important thing for India right now is to have the Strait of Hormuz open or for the flow of ships to and from India to increase, and he hopes this will happen sooner or later. Even if the war continues, there is every hope that the Strait of Hormuz will be opened or some kind of arrangement will be reached.

He further stated that when tensions in the region subside, financial sector stocks could lead the overall market recovery. He stated that financial stocks have been under greater pressure during the recent decline, even though they are less directly affected by the Middle East conflict.

What is the current situation?
Uncertainty remains over the war in Iran, while Iran has reiterated its intention to keep the Strait of Hormuz closed. Several attacks on ships in the past few days have disrupted traffic on this route. Due to this, crude oil prices have once again crossed $100 per barrel. Recently, Iran warned that the world should be prepared for prices of $200.

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