Stock market crash today:
BSE Sensex
and Nifty50, the Indian benchmark equity indices, opened in red on Monday led by global cues and uncertainties. BSE Sensex plunged 700 points and
Nifty50
was near 22,300. At 9:31 AM, BSE Sensex was trading at 73,594.17, down 651 points or 0.88%. Nifty50 was at 22,313.25, down 206 points or 0.92%.
Indian stock markets opened the week with a decline, following the trend in Asian markets.
Investor sentiment was affected by Iran’s retaliatory attack on Israel, raising concerns about a potential wider conflict in the region.
The total market capitalisation of BSE-listed companies dropped by Rs 5 lakh crore to Rs 394.68 lakh crore.
Sector-wise, Nifty PSU Bank, Realty, and Media started with declines of over 2%, while Nifty Auto, Financial, Metal, Pharma, and Oil & Gas opened with losses ranging from 1-2%.
Why BSE Sensex, Nifty50 have plunged today
- Iran launched a drone missile attack on Israel on Saturday night, purportedly in retaliation for a suspected Israeli strike on its consulate in Damascus on April 1, resulting in the deaths of seven Iranian Revolutionary Guard Corps personnel, including two generals. Following Iran’s military action, both Sensex and Nifty saw significant declines on Monday as investors expressed apprehension about the potential repercussions of the attack on Israel. With the market currently at an all-time high, there’s a sense of caution among investors. Geopolitical tensions have the potential to trigger a swift market reaction, and we’re closely monitoring how the situation unfolds, Kranthi Bathini of WealthMills Securities told ETMarkets.
- Asian markets opened the week cautiously, with MSCI’s Asia-Pacific shares outside Japan dropping 0.7% following Iran’s launch of explosive drones and missiles at Israel on Saturday. Japan’s Nikkei fell over 1%, Australia’s S&P/ASX 200 index lost 0.6%, and Hong Kong’s Hang Seng Index slumped 0.8%.
- US Treasury yields remained close to recent highs as traders adjusted their expectations for the Federal Reserve’s rate cut pace and scale this year. The benchmark 10-year yield stood at 4.5277%, while the two-year yield hovered near 5% at 4.8966%.