Stock Market Tumbles: Sensex Falls 1,350 Points, ₹8.5 Lakh Crore Wiped Out As Oil Prices Surge
Stock Market Tumbles: Sensex Falls 1,350 Points, ₹8.5 Lakh Crore Wiped Out As Oil Prices Surge
Markets tumble amid rising crude prices and Middle East tensions; rupee hits record low against the US dollar.
Indian stock markets witnessed a sharp sell-off on Monday as escalating tensions in the Middle East and a sudden surge in crude oil prices triggered widespread panic among investors. The benchmark indices ended the day significantly lower, wiping out nearly ₹8.5 lakh crore in investor wealth.
The BSE Sensex closed 1,352.74 points lower at 77,566.16, while the Nifty50 declined 422.40 points to settle at 24,028.05, marking a fall of around 1.7 per cent for both indices.
Markets had opened sharply lower during the morning session as global crude oil prices surged following geopolitical tensions. However, both indices recovered part of their losses during the day after oil prices cooled slightly from intraday highs.
The Nifty had fallen to an intraday low of 23,868.05 before recovering about 160 points by the closing bell. Similarly, the Sensex also trimmed losses after touching a low of 76,424.55 earlier in the session.
With the latest decline, the Nifty50 has now slipped more than 10 per cent from its record high of 26,373, which was touched in early January, placing the index firmly in the technical correction zone.
Broader markets witnessed even sharper declines compared to the benchmark indices. The Nifty Midcap index dropped 1.97 per cent, while the Nifty Smallcap index fell 2.22 per cent, reflecting heavy selling pressure across mid-sized and smaller companies.
Among sectors, banking and auto stocks were the worst hit during the trading session. The Nifty PSU Bank index plunged nearly 4 per cent, emerging as the biggest sectoral loser. Several major banking stocks saw steep declines amid rising market volatility.
Energy stocks also faced selling pressure as crude oil prices surged above $100 per barrel, raising concerns about higher input costs and potential pressure on corporate margins.
In contrast, the IT sector managed to show some resilience and was among the few segments that ended the session with marginal gains. Technology stocks provided limited support to the broader market amid the widespread sell-off.
Adding to investor concerns, the Indian rupee weakened sharply against the US dollar, ending the session at a record closing low of 92.33 per dollar, compared to 91.74 in the previous session.
The sharp depreciation in the currency reflects continued pressure from rising global oil prices, capital outflows and heightened geopolitical uncertainty.
Market experts believe that volatility could remain elevated in the coming days as global investors closely monitor developments in the Middle East and movements in crude oil prices, which remain a key factor influencing market sentiment.
