The Indian stock market took another significant hit on Friday, driven by escalating tensions in West Asia and rising oil prices. By 11:45 am, the benchmark Sensex had slipped nearly 1%, trading at 75,364 points. Meanwhile, the Nifty index also experienced a dip, down 1.1% at 23,401 points. The downward trend started on March 2, coinciding with the onset of the conflict, causing concerns among investors.

As the situation in West Asia stretches into its third week, volatility in the market has surged, with the India VIX rising by 0.85% early in the day. The ripple effects were also felt across major Asian stock markets, with the Hang Seng index in Hong Kong dropping 0.7%, Japan’s Nikkei declining by 1.29%, and South Korea’s Kospi falling by a notable 1.8%. Investors are clearly on edge, watching global developments closely.

In addition to market instability, the Indian rupee suffered further depreciation, plunging by 12 paise to a record low of 92.37 against the US dollar. This marks a new low for the currency, surpassing its previous record of 92.35 set just a day before. On Wednesday, the rupee had been slightly better at 92.04 before the ongoing turmoil impacted its value. The rapid drop is largely attributed to soaring crude oil prices, which have skyrocketed past the $100-per-barrel mark once again.

Notably, oil prices have surged nearly 40% since the conflict escalated following military actions by Israel and the United States against Iran on February 28. This spike in oil costs is deeply concerning for India, a major importer of crude, and is likely to add more pressure on both the currency and the stock market in the coming days. Investors are keeping a close eye on these developments, as the global situation continues to evolve.