Economy News: Stock market falls and gold-silver prices drop after US-Iran talks fail

The failure of talks between the US and Iran for an agreement, along with fears that the conflict may continue for a long time, caused crude oil prices to rise sharply, leading to a sell-off in the market.

The 30-share BSE Sensex closed 702.68 points (0.91 percent) lower at 76,847.57. During the session, it had fallen by as much as 1,681.93 points to 75,868.32.The NSE Nifty also declined 207.95 points (0.86 percent) to close at 23,842.65.

Among Sensex companies, major losers included Maruti, InterGlobe Aviation, Bajaj Finance, Reliance Industries, Tata Consultancy Services, and HDFC Bank.On the other hand, gainers included ICICI Bank, NTPC, and Axis Bank.

The historic 21-hour talks between the US and Iran held in Pakistan ended without any result. This has made the future of the two-week ceasefire uncertain. Global oil benchmark Brent Crude surged 7.73 percent to $102.6 per barrel.

In other Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng closed in the red, while China’s Shanghai SSE Composite ended with marginal gains. Major European markets were trading lower in the afternoon session.

US markets had closed mixed on Friday.Vinod Nair, Head of Research at Geojit Investments Ltd., said, “Markets are receiving limited support from last week’s ceasefire agreement. Selective buying and bargain hunting on dips are being seen.

Despite the initial negative reaction to the announcement of a US naval blockade in the Strait of Hormuz following the failure of US-Iran talks, this trend is visible.

However, due to the failure of the talks, crude oil prices have crossed $100 per barrel.”Gold prices see marginal decline; Silver becomes ?3,000 cheaperGold prices witnessed a marginal decline on Monday. Meanwhile, silver prices dropped by around ?3,000.

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by ?316 to ?1,50,011 per 10 grams, down from ?1,50,327 per 10 grams earlier.The price of 22-carat gold declined from ?1,37,700 per 10 grams to ?1,37,410 per 10 grams.