• Source:JND
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Stock Market Crash: The domestic equity indices plummeted over 3 per cent as Crude prices surged over $115 per barrel amid the escalating geopolitical tension in the Middle East. BSE Sensex plunged 2,496.89 points or 3.26 per cent to settle at 74,207.24, while Nifty50 ended the session at 23,002.15, down 775.65 points or 3.26 per cent.

All the stocks from the Sensex basket settled in negative territory with Eternal, Bajaj Finance, Mahindra And Mahindra, HDFC Bank, L&T, Bajaj FinServ, Trent, Indigo, Axis Bank, Infosys, Maruti, TCS, HCL Tech, Tech Mahindra, Ultratech Cement, Adani Ports and Asian Paints being the top losers.

Among Sectoral front, Nifty Fin Services and Nifty Bank plummeted in the range of 3.3 to 3.7 per cent. While Nifty Auto fell over 4 per cent, Nifty FMCG plummeted over 2.5 per cent, while Nifty IT plunged 3.3 per cent.

Broader indices bled amid a heavy sell-off. Nifty Small Cap 100 and Nifty Midcap 100 tanked over 3 per cent, while Nifty Next 50 and Nifty 100 plummeted nearly 3.2 per cent.

"The domestic market ended sharply lower, giving up the gains of the past three days, as a series of attacks on energy infrastructure in the Middle East triggered a renewed spike in oil prices and dampened investor sentiment. The US Fed adopted a hawkish stance, signalling higher inflation amid elevated geopolitical uncertainty," said Vinod Nair, Head of Research, Geojit Investments Limited. 

Why was the market down today?

Crude Oil Price Surge

The market fell sharply after having a positive trend for the past three sessions as crude oil prices soared over $115 per barrel amid escalating geopolitical tensions due to the ongoing war in the Middle East.

"Crude oil prices have surged sharply, with Brent crude moving toward the $109–$120 per barrel range, reigniting inflation concerns, especially for energy-importing economies like India," according to an analyst.

Broad-Based Selling

Amid the development, broad-based selling erupted as investors turned cautious once again. The crash is led by heavy selling in stocks from financials and banking sectors. Meanwhile, Auto and, realty and IT stocks fell significantly in the early session. The broader market bled as well

"Relentless FII selling pushed the rupee to a fresh all-time low, while concerns over rising input costs, potential fuel supply disruptions, and slowdown fears led to broad-based selling. Stock-specific pressure was seen in HDFC Bank following the exit of its part-time chairman. Current volatility may persist in the near term due to elevated oil prices and the new wave of attacks in the Middle East," Nair said. 

Also Read: All Time Low Alert! Rupee Crashes 23 Paise To Close At Record Low of 92.63 Against US Dollar; Stock Market Soars

Escalating Middle East Conflict

"Indian equity markets witnessed a sharp reversal today, breaking their three-day recovery rally and closing significantly lower, with benchmark indices declining by nearly 3.3%. The sell-off was largely driven by a fresh escalation in geopolitical tensions in the Middle East, where renewed strikes between Israel and Iran targeting critical oil and LNG infrastructure have reignited concerns over global energy supply disruptions," Ponmudi R, CEo Of Enrich Money, said. 

According to the analyst, the impact was not isolated to India. Global markets across the US, Europe, and Asia traded under pressure, indicating a broader risk-off sentiment as investors reassessed exposure amid rising geopolitical uncertainty. 


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