India’s benchmark indices Sensex and Nifty50 started the week with a crash influenced by global factors and geopolitical uncertainties. Know what factors led to stock market crash today.
Today’s Stock Market Turmoil: Sensex and Nifty50 Plunge Amid Global and Geopolitical Ripples
India’s financial landscape witnessed a tumultuous start to the week as the Sensex and Nifty50 indices nosedived, influenced by a complex interplay of global factors and geopolitical uncertainties.
At the opening bell, the 30-share S&P BSE Sensex tumbled by a staggering 929.74 points, or 1.25 percent, starting at 73,281.65. Simultaneously, the Nifty50 index dipped by 180.35 points, or 0.80 percent, commencing at 22,339.05.
Adding to the distress, the market capitalization of all listed companies on BSE witnessed a daunting decline of Rs 5.7 lakh crore. Several sectors bore the brunt, with Nifty PSU Bank, Realty, and Media leading the plunge with declines exceeding 2 percent, while Nifty Auto, Financial, Metal, Pharma, and Oil & Gas grappled with losses ranging between 1-2 percent.
The primary catalyst behind this market mayhem stems from Iran’s retaliatory strike on Israel, intensifying fears of an escalating conflict in the region. Investors are on edge, wary of the potential repercussions of this military confrontation on global markets.
Furthermore, US inflation reared its head, surpassing expectations in March, primarily fueled by soaring petrol and shelter costs. This uptick in inflation, marking a 3.5 percent year-on-year increase, stands as the most substantial surge in six months, casting a shadow of uncertainty over global economic stability.
Closer to home, the India-Mauritius tax treaty underwent significant amendments, including the incorporation of a principal purpose test to ascertain foreign investors’ eligibility for treaty benefits. These changes, coupled with the looming specter of the 2024 General Elections, have contributed to the prevailing market jitters.
As tensions simmer in the Middle East, apprehensions surrounding potential disruptions in oil traffic have heightened, although current futures indicate a slight decline in prices. Nevertheless, the overarching concern persists, underscoring the fragility of global oil markets amidst geopolitical volatility.
Navigating this stormy financial climate requires astute vigilance and strategic maneuvering. With multiple factors vying for attention—from geopolitical flashpoints to economic indicators and electoral uncertainties—investors must tread cautiously and seek prudent counsel to safeguard their financial interests.
(Disclaimer: The above article is intended for informational purposes only and should not be construed as investment advice. CredTimes urges readers to consult with financial advisors before making any financial decisions.)
