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Impact Of Sunni Militant Attack In Iraq On the Indian Capital Market

As everything goes smoothly and India was on the track of gaining back its financial position among the world, capital market of India was doing very well and Rupee is getting its strongest value, we heard about the sudden fluctuation in the opposite direction. Many investors are not able to recognize about this effect and then we got the news regarding Iraq’s internal conditions which affected the Indian capital market in many ways.

Reason behind the sudden change in the market trends

From past few weeks, the economists are announcing the Stock Trading Tips regarding the strengthening of Rupee and its impact on other segments of the market. But then we noticed the drop in its value and high rise in the demand of Dollars. This happens due to the Sunni Militant attack in the Iraq and the biggest oil refinery captured by them.

This gives rise in the deficiency of crude oil in the market followed with the increasing demand of dollar. It also affects the GOLD and Silver Market and India which is end with the value downfall of Indian currency (Rupee) in comparison to Dollar.

Impacts of this situation on the other segments of Indian capital market

Many companies registered in the cash and equity segment got affected by this fluctuation in the market. Nifty and Sensex slips down and close on the lower points than the opened one. This may further affect the the position gained by Indian Rupee after the formation of new government.

There is a high possibility that the petroleum price goes high which will surely affect the retail segment of the country. This also leads towards the losses of some of the industries of the equity segment. Experts says that, this impact is seen due to rising crude prices.

How long it will stay

This brutal and unleash wave of violence gives the assurance of series of mass killing at several places and evacuation of nearly half of the population to other places. There is no official assurance but it is assumed that around 17,000 Iraqi soldiers were killed at different places in dozens, unarmed and lying prone.

As this violence is affecting the peace of whole world US government and Iranian officials are discussing on the option of a strict military action against it. The whole situation will be come under control when the local government dominate over the militants and took back the peacefulness of the region.

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