Market experts on Tuesday urged stock market investors not to panic after the Bombay Stock Exchange fell by 588.15 points in early trade, saying that the decline in prices of Brent crude oil has led to Indian market downfall which is a positive sign for us.
"Indian BSE Sensex is down because globally crude oil prices have fallen. Brent Crude oil that we use in India, its prices have fallen. So, overall there are many economies in the world whose economy is dependent on crude oil. So, a sentiment of negativity is prevailing in the international markets. Now, the same negative sentiments have come to India," said Akash Jindal, a market expert.
"If we talk specifically about India, Brent Crude coming down is a beneficial for India. It is going to benefit India because a lower crude oil price means lesser deficit and lesser inflation. If you see it from Indian perspective, it is of advantage for our economy," he added.
He said that globally the sentiments are negative in the market. So, the sentiment has sort of travelled to India and that is why Indian sensex is also down.
"The message for the Indian stock market investor is that there is no need to panic as nothing has changed as far as the Indian economy is concerned or the Indian corporate sector is concerned. Brent Crude coming down means only good things for India," he added.
Another market expert Sunil Shah also held the global markets responsible for the downfall in BSE.
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"Currently, Sensex is down by more than 500 points and Nifty is around 1500 points down. So, the reason is global cues. We have witnessed that the Asian markets were down by huge margins. There are certain factors that are pushing the capital markets down. One is, Europe is still not stable ; they feel that again the problem will come after this development in Greece," said Shah.
Shah further expressed uncertainty on how the situation will evolve in Greece saying that they are going for fresh elections and the likely new government is planning to take an exit from EO.
"Second cause of concern is that commodity prices are going down by the day and crude oil is a major loser. All this is an indication that the global economy is slowing down and that could have impact on every capital market of the world," he added.
"But as far as India is concerned, I am a little hopeful about it because this low energy prices and low commodity prices will definitely benefit India. Our micro-numbers which were not in good shape just a year back; this will to put them in shape," he added.
The Bombay Stock Exchange (BSE) Sensex today fell 588.15 points to land at 27,254.17 points, with markets heading towards their biggest fall in over three weeks. The National Stock Exchange (NSE) Nifty also dropped points, opening at below the 8,300 mark.
According to reports, domestic stocks came under pressure of heavy selling by investors amid global sell-off on worries about the Eurozone and sinking oil prices globally.
The Sensex was also influenced by Japan's Nikkei, which experienced losses of over 500 points in its last hour of trade.