Mumbai : India’s stock market faced a significant blow as the Sensex plummeted by over 1,700 points, erasing Rs 11 lakh crore in market value. The Nifty50 also fell below 25,250, reflecting widespread losses driven by geopolitical and financial concerns.
Here are the four major factors behind this sharp downturn:
- Iran-Israel Conflict: Tensions escalated in the Middle East following Iranian missile attacks on Israel, sparking fears that oil supplies from the region could be disrupted. Investors responded by selling off equities amid the uncertainty.
- Rising Oil Prices: Crude oil prices surged, with Brent crude exceeding $75 per barrel. This increase adds pressure on India’s import bill, further straining the economy and affecting investor sentiment.
- SEBI F&O Tightening: The Securities and Exchange Board of India (SEBI) introduced stricter futures and options regulations. These changes, aimed at curbing retail participation, reduced market liquidity and added to the selling pressure.
- China’s Market Resurgence: Stimulus measures in China have revitalized its stock market, attracting foreign institutional investors. This shift caused a significant outflow of funds from India, intensifying the market slide.
Key players like Reliance Industries, HDFC Bank, and ICICI Bank led the losses, while oil and gas stocks were among the worst hit.
