Sensex crashes nearly 1,200 points: What is behind today's decline?
What's the story
The Indian stock market witnessed a major crash on Friday, with the Sensex and Nifty 50 indices plummeting over 1.5%. The Sensex fell by over 1,167 points to 74,106.98 while Nifty 50 witnessed a decline of 340 points to hit 22,964. The mid and small-cap indices on BSE also fell by over 1% each.
Market impact
BSE loses ₹6 lakh crore in just few minutes
The sudden crash in the stock market resulted in a massive loss for investors. The total market capitalization of BSE-listed companies fell from ₹431 lakh crore to ₹425 lakh crore in just a few minutes, resulting in a loss of nearly ₹6 lakh crore. This sharp decline highlights the volatility and unpredictability of the Indian stock market.
Global influence
Global factors affecting Indian market
The Indian stock market's poor performance today can be attributed to weak global cues. Major Asian markets such as Korea's Kospi and Japan's Nikkei fell by up to 2%, following a similar decline in the S&P 500 and NASDAQ. Uncertainty surrounding the US-Iran conflict is also keeping investors wary. Meanwhile, the Indian rupee weakened, breaching the 94 mark against the US dollar for the first time, while crude prices remained well above $100, further dragging the market down.