Stock market crash today reasons: Stock market benchmark indices Sensex and Nifty opened deep in the red today as investor sentiment remained fragile amid escalating geopolitical tensions in the Middle East. The BSE Sensex started the session with a cut of nearly 500 points at 76,369.65. The index made a low of 75,871.18, down 992 points or 1.3 per cent in early morning deals. Similarly, the Nifty 50 index fell 192 points or 0.80 per cent to open at 23,674. The 50-share pack made a low of 23,556.30 as it cracked 310 points or 1.30 per cent.
As of 9:35AM, both the benchmark indices were trading near their lows with Sensex quoting at 75,965 and Nifty at 23,585.
The sectoral participation remained negative, reflecting broad-based weakness across the market. All the indices were trading in the red, with the Nifty Auto, Nifty Realty, and Nifty Consumer Durables falling more than 2 per cent each. The Nifty Bank index tumbled 750 points or 1.3 per cent to trade at 54,980, with all 14 constituents trading in the red.
On the broader front, pressure was visible across the board. The Nifty Midcap 100 and Nifty Smallcap 100 indices declined more than 1.5 per cent.
India VIX, the fear gauge index, spiked 4 per cent to cross the 21 mark, signaling underlying uncertainty in the markets.
With today’s sharp decline, the BSE Sensex has lost more than 2,300 points, while the NSE Nifty has dipped over 700 points. In the previous session, the 30-share BSE Sensex tumbled 1,342.27 points or 1.72 per cent to 76,863.71. The NSE Nifty tanked 394.75 points or 1.63 per cent to 23,866.85.
Markets crash today: Key reasons
Oil prices above $100: Brent crude jumped above $100 a barrel after Oman cleared all vessels from its key export oil terminal and two tankers were attacked in Iraqi waters, underscoring the broader risks to energy assets across the Middle East and overshadowing a record release from the IEA. The global benchmark soared as much as 10.5 per cent to $101.59 a barrel, while West Texas Intermediate surged near $96.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that external headwinds have pushed the market into a weak zone. With the war continuing to rage with no signs of let up and Brent crude again bouncing back to $100 levels, the weakness is likely to persist.
Weak INR: The rupee depreciated 31 paise to 92.32 against the US dollar today, pressured by FII outflows, rising global crude oil prices and a stronger greenback. The local unit declined 16 paise to settle at 92.01 against the US dollar on Wednesday.
Dilip Parmar, senior research analyst, HDFC Securities, said that intensified geopolitical tensions in West Asia have triggered risk-averse sentiment and pushed crude oil prices higher — both of which have weighed heavily on the rupee. Tight dollar liquidity has further exacerbated the decline, driven by capital outflows from domestic equity and debt markets.
In the near term, the analyst said, spot USDINR finds immediate support at 91.60, with key resistance seen at 92.40.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24 per cent higher at 99.47.
Global markets: Shares fell in Asia as oil prices jumped on reports that more ships had been struck in the Strait of Hormuz and in Iraqi waters. Japan’s Nikkei 225 index fell 1.8 per cent, and South Korea’s Kospi and Hong Kong’s Hang Seng index also dropped 1.2 per cent each. Shanghai’s SSE Composite index was seen trading in the red with a loss of 0.65 per cent.
Overnight, the US markets ended mostly flat, with the Dow Jones and the S&P 500 down slightly. The tech heavyweight Nasdaq Composite settled with positive bias.
