Indian equity markets suffered a severe blow on Monday as the BSE Sensex plunged nearly 1,140 points to close around 78,778, while the NSE Nifty 50 shed approximately 420 points to settle near 24,028.
At the day's worst, the Sensex had fallen by as much as 2,494 points — touching an intraday low of 76,424 — wiping out over ₹12.39 lakh crore in investor wealth in a matter of minutes. Every constituent of the 30-stock Sensex closed in the red, with SBI, IndiGo, Maruti Suzuki, and Mahindra & Mahindra among the biggest casualties. Of all 50 Nifty stocks, only Wipro managed a marginal gain of 0.77%, standing alone against the tide.
Key Highlights
- Sensex crashed 2,494 points on March 9, wiping ₹12.39 lakh crore investor wealth instantly.
- Gold surged to ₹16,364 per gram as rupee slipped past ₹92 per dollar.
The carnage was fuelled by a perfect storm of geopolitical turmoil and rising energy costs. With the US–Iran–Israel conflict escalating into its second week, Brent crude surged to approximately $118.2 per barrel — its highest level in nearly two years — stoking fears of runaway inflation and a widening current account deficit.
An LPG price hike of ₹60 per cylinder, the second such increase within a year, compounded the anxiety. Foreign institutional investors (FIIs) aggravated the sell-off by pulling out close to ₹21,000 crore from Indian equities over four sessions, as global risk appetite evaporated. VK Vijayakumar of Geojit Investments warned that inflation would inevitably rise, regardless of whether the oil price burden is passed on to consumers.
Also Read: Indian Markets Rebound; Gold Stays Firm while Rupee Weakens
The Indian rupee hit a new all-time low on March 9, trading at 92.335 against the US dollar, eclipsing its previous record of 92.3025 set just last week. The domestic currency weakened by 0.6%, with the sharp decline partially mitigated by suspected RBI intervention — the central bank reportedly sold dollars to prevent a steeper slide.
The price of 24-karat gold recovered to ₹16,364 per gram (₹1,63,640 per 10 grams) after a sharp five-session decline, buoyed by safe-haven demand. However, international gold prices dipped 0.8% to around $5,130 per ounce as a stronger US dollar and profit-booking applied pressure. Analysts expect markets to remain volatile through the week, closely tracking crude oil movements and diplomatic developments in West Asia.
