Stock Market Slump Today: Sensex Crashes 1,100 Points, Nifty 50 Falls Under 23,750; 7 Factors Explained
Today, the Sensex plunges 1,100 points and the Nifty slips below 23,750 as seven key factors trigger sharp declines in the stock market.
On Monday, the stock market crash today India and faced a sharp decline, with the Sensex and nifty falling about 2% each. This downturn was determined by escalating US-Iran tensions, a blockade threat in the Strait of Hormuz. It can ensuing surge in oil prices above $100 per barrel. Global markets even tumbled, signalling a bearish feeling.
SE Sensex opened 1613 points lower at 75,937.16, from the past close of 77,550.25. At 9.16 am, it traded 1624.75 points or 2.10% lower at 75,925.50, and Nifty below 23750, 479.45 points or 1.99% to 23,571.15.
Oil price impact on stock market was observed on Monday morning after the US decided to execute a blockade on all maritime traffic entering and exiting Iranian ports following the breakdown of peace talks between Iran and the US.
On Monday morning, June Brent crude futures surged 7.54% to $102.38, while May WTI crude futures dropped 8.81% to $105.08.
The market sell-off followed a declaration by Donald Trump imposing a naval blockade on all shipping to and from Iranian ports after political talks collapsed. The move heightened ideas about the future crude supply disruptions via the Strait of Hormuz, an important artery for global oil trade.
Moreover, foreign institutional investors became net sellers amid worldwide uncertainty, pulling out considerable funds from Indian equities. Weak cues from Asian and US markets further pressured sentiment, while profit booking after new highs added to the decline. A strengthening dollar and rising bond yields also dampened investor confidence, making equities less attractive in the short term. US Iran tensions can be observed on the stock market.
