Plight of Country’s Capital Markets

June 11, 2026

Every ordinary citizen in India is currently aware of the state of the country’s retail markets. Disruptions in the supply of crude oil and natural gas, along with shortages of agricultural fertilizers, are consequences of the fierce war raging in West Asia. Despite verbal assurances regarding ceasefires and peace-building, the conflict shows no signs of ending, and consequently, there appears to be no respite from the hardships faced by the common man. Inflation in retail markets has overwhelmed the average citizen.

According to the opposition, these difficulties are set to escalate further; opposition leader Rahul Gandhi has even termed the situation a “tsunami.” Let us also turn our attention to India’s capital markets. These markets form the bedrock of investment and production, and the rate of economic growth hinges upon them. The country looks to these markets to drive its all-round development. We have set a goal for India to become a fully developed nation by 2047, as we celebrate the centenary of our independence.

We harbor the dream of surpassing the US and China to establish India as the world’s supreme power. While there is no harm in dreaming, the shadow of uncertainty cast by these conflicts over ordinary investors and producers makes our economic goals appear increasingly distant. Rising prices of crude oil and gas, coupled with inflation, have severely strained everyone, yet there is widespread panic in the capital markets. Even the prices of gold and silver—assets Indians have traditionally invested in for financial security—are witnessing volatility. A decline in economic indicators and the value of the rupee is clearly evident; the rupee has depreciated to the level of 95 against the dollar. A steep decline in stock market indices continues.

Amidst the uncertainty of war, stock investors have suffered losses amounting to Rs 6.31 lakh crore. Gold prices fell by Rs. 1,100 on Monday but showed a slight upward trend on Tuesday. Similarly, silver prices recovered somewhat on Tuesday after a drop on Monday. On Monday, the stock market index tumbled by 719 points, and the Nifty fell by 244 points. Although both opened with gains of 400 and 100 points respectively on Tuesday, it is evident that the solid foundation has eroded. Meanwhile, crude oil prices in the global market have surged by 5 percent, and the supply of natural gas has become even more uncertain.

Domestic pricing dynamics have left people with insufficient purchasing power to invest safely in gold or silver. Furthermore, economic activity in the country has fallen below previous levels, and global conditions are shifting rapidly. The conflict involving the US, Israel, and Iran shows no signs of ending, even after the announcement of a ceasefire. The world cannot rely on the leaders of these nations to steer the situation toward a positive outcome rather than plunging it into deeper turmoil.

Despite US President Donald Trump admonishing Israeli Prime Minister Netanyahu—warning that failure to halt attacks on Lebanon would leave Israel isolated—Israel continues to launch relentless strikes against Hezbollah. President Trump has faced heckling at public gatherings in the US, reflecting the general public’s growing frustration with his war policies. While Trump wishes to disengage from the conflict, supporting Israel has become a strategic necessity for him