Stock market crash today: Nifty50 and BSE Sensex continued their slide on Monday, dropping sharply on negative global cues. While Nifty50 went below 22,350, BSE Sensex closed below 72,000. Nifty50 ended the trading session at 22,331.40, down 488 points or 2.14%. BSE Sensex closed at 71,947.55, down 1,636 points or 2.22%. The selloff was largely driven by escalating tensions in the Iran–US–Israel conflict, which reignited a surge in global oil prices, among other factors. The broad-based decline eroded more than Rs 9 lakh crore from the total market capitalisation of companies listed on the BSE, bringing it down to around Rs 413 lakh crore.
Why did stock market crash today? Top reasons
US-Iran war continuesConcerns surrounding the ongoing conflict between the US and Iran intensified after reports suggested that the administration led by President Donald Trump is preparing for an extended period of ground operations in Iran. According to a report by The Washington Post, the US Central Command has deployed around 3,500 Marines and sailors to the Middle East aboard the USS Tripoli, marking the largest American military mobilisation in the region in two decades.Meanwhile, Iran’s parliament speaker issued a warning that the country’s forces were prepared to respond to any US ground incursion, stating that they were “waiting for American soldiers” and would “rain fire” on troops entering Iranian territory.Oil prices jumpCrude oil prices extended their upward momentum as tensions in the Middle East intensified. Brent crude futures climbed about 3% to trade near $115 per barrel, while West Texas Intermediate (WTI) futures rose close to 2% to around $101 per barrel during afternoon trade.Macquarie cautioned that oil prices could spike to as high as $200 per barrel if the conflict involving Iran persists into the middle of the year and disrupts movement through the critical Strait of Hormuz. Banking stocks slide after RBI move on FX exposureShares of banking companies came under significant pressure after the Reserve Bank of India (RBI) on Friday instructed lenders to limit their net open rupee positions in the foreign exchange market to $100 million at the close of each trading day, with the deadline for compliance set at April 10. The move is expected to trigger dollar sales by banks in the domestic forex market as they unwind existing arbitrage positions.Weak global cuesEquity markets across the world witnessed broad-based declines, and Indian markets mirrored the trend. Japan’s Nikkei dropped over 3%, while South Korea’s Kospi also fell around 3%. Taiwan’s benchmark index slipped 2%, and Hong Kong’s Hang Seng lost nearly 1%. In Europe, Germany’s DAX and France’s CAC edged lower, whereas the UK’s FTSE managed to buck the trend with a gain of about 0.5%.In the US, Wall Street ended the previous session with sharp losses. The S&P 500 declined around 1.7%, while the Nasdaq, which is heavily weighted towards technology stocks, fell more than 2%.Continued FII outflowsPersistent selling by foreign investors has remained a key drag on Indian equities, affecting both market sentiment and the rupee. Foreign institutional investors have stayed net sellers for the 20th straight session, offloading shares worth roughly Rs 4,367 crore on Friday, as per NSE data. Although this figure does not include the current day’s activity, the sustained outflows in recent sessions have continued to weigh on investor confidence.Rupee crosses 95 for the first timeThe rupee resumed its downward trajectory after a brief recovery earlier in the session, breaching the 95 mark against the US dollar for the first time. “Even though the RBI directive will curb excessive speculation in the futures market, this is not sufficient to prevent the weakness in the currency which stems from the rising trade and CAD triggered by the spike in crude and sustained FPI selling in the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
