Indian stock market crashes as benchmark indices, the BSE Sensex and Nifty 50, plunged sharply on Monday, April 13, as US-Iran negotiations fail triggered a broad-based selloff across markets.
The Sensex fell nearly 1,700 points to an intraday low of 75,868, while the Nifty 50 dropped around 500 points to 23,556, marking a decline of over 2% in early trade. The sharp correction wiped out nearly Rs 8 lakh crore in investor wealth within minutes.
Key Highlights
- Sensex crashes 1,700 points, Nifty falls 2% as US-Iran negotiations fail, oil surges.
- Rising crude prices, weak rupee, global tensions trigger Rs 8 lakh crore investor wealth erosion.
Why is Stock Market Crashing?
The selloff follows the collapse of US-Iran negotiations, which heightened geopolitical uncertainty and dampened investor sentiment. Concerns escalated further after the United States signalled a possible blockade of the Strait of Hormuz, raising fears of disruptions in global oil supply.
Global crude oil prices surged above $100 per barrel following the failed negotiations, intensifying concerns over inflation and economic growth. Analysts warn that sustained high oil prices could negatively impact India’s economy, given its dependence on imports.
“With the failure of US-Iran peace talks and Trump’s declaration of a US naval blockade in the Strait of Hormuz, uncertainty and crude prices have spiked. Brent at $103 is emerging as another threat to the economy and markets. There can be dramatic geopolitical developments, and the ideal strategy in this ultra-uncertain situation is to wait and watch,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Also Read: India's Forex Reserves Jump $9.06 Billion to $697.12 Billion
The decline was not limited to large-cap stocks. Midcap and smallcap indices also fell more than 2%, indicating widespread selling pressure across sectors. Banking, financial, and oil-related stocks were among the hardest hit.
Indian equities mirrored weakness in global markets, with major Asian indices trading lower amid rising geopolitical risks. Investor sentiment turned risk-averse as uncertainty around the West Asia conflict continued to escalate.
The Indian rupee weakened sharply against the US dollar, adding further pressure on the markets. Rising oil prices and a stronger dollar are expected to accelerate foreign capital outflows, limiting near-term recovery prospects.
