Indian Stock Market Plunges 1,700 Points Amid Heavy Selling Pressure, Wiping Out ₹8 Lakh Crore in Investor Value
Indian Stock Market Crashes Over 2% Amid Global Uncertainty
The Indian stock market benchmarks, the Sensex and the Nifty 50, began the week on a pessimistic note, plummeting over 2% in morning trade on Monday, April 13. The Sensex crashed nearly 1,700 points, or more than 2%, to an intraday low of 75,868, while the NSE benchmark Nifty 50 plunged 500 points, or 2%, to the day's low of 23,556. The selloff engulfed all segments of the market, as the Nifty Midcap 100 and Smallcap 100 indices also plunged more than 2% each.
Investors lost approximately ₹8 lakh crore within minutes as the overall market capitalisation of BSE-listed firms was at ₹443 lakh crore around 9:20 am compared to ₹451 lakh crore in the previous session.
Several key factors are behind the fall in the Indian stock market today. The US-Iran ceasefire talks over the weekend ended without a deal, dashing hopes that one of the most pressing issues in global markets in recent history—the US-Iran war—would end with an amicable solution. The US plan to blockade the Strait of Hormuz has intensified fears of a global energy supply shock, casting a shadow of uncertainty over the global economy.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The situation in West Asia is further complicated by the US President Donald Trump's tariff threat against China. Media reports suggest that Trump is back with the tariff rhetoric, targeting China if it supplies weapons to Iran. Trump reportedly said that if China does so, it would face a 50% tariff, which is a staggering amount.
Another significant factor contributing to the market's decline is the surge in crude oil prices. Brent Crude prices jumped over 8% to trade near the $103 per barrel, while the US West Texas Intermediate (WTI) crude futures also rallied more than 8% to $105 per barrel. Economists warn that if prices remain at elevated levels for more than two months, it will be a significant negative for Indian economic growth and increase inflationary risks.
| Market Index | Previous Session Close | Current Session Low | Percentage Drop |
|---|---|---|---|
| Sensex | 77,563 | 75,868 | 2.1% |
| Nifty 50 | 23,956 | 23,556 | 2.0% |
| Nifty Midcap 100 | 14,531 | 14,244 | 2.1% |
| Nifty Smallcap 100 | 6,451 | 6,321 | 2.1% |
Market capitalisation of BSE-listed firms:
- Previous session: ₹451 lakh crore
- Current session: ₹443 lakh crore
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious and consider diversifying their portfolios to minimize losses.
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