Stock market crash: Following the escalation in US-Iran tensions, key Indian stock market indices extended their morning losses. US bond yields and crude oil prices bounced back strongly from today’s lows after the fresh escalation in Middle East tensions, following US President Donald Trump’s hint at a fresh strike in Iran.
In this sharp sell-off, the market capitalisation of the BSE-listed stocks slumped to ₹4,62,52,492.42 crore, losing around ₹9.5 lakh crore in an hour.
The Nifty 50 index has tumbled around 300 points, while the BSE Sensex has lost over 850 points. The Bank Nifty index is also trading in red, losing more than 350 points. In this fresh crash, the Nifty 50 index has decisively crashed below the 22,500 support, while the BSE Sensex has come below the 71,800 support.
The US 10-year bond yield has bounced back from today’s lower levels, gaining over 0.75%. The US 30-year bond yield has also gained more than 0.70% during Thursday’s trading.
Top losers of Sensex, Nifty 50
44 out of 50 Nifty stocks are trading red. Shares of Bajaj Auto, Maruti Suzuki, Shriram Finance, Adani Ports, M&M, Tata Steel, Adani Enterprises, etc., are among the biggest losers in the Nifty 50.
27 of the 30 Sensex stocks are trading in the red. Tata Steel, Ultratech Cement, Tata Motors PV, Eternal, Powergrid, etc., are among the biggest losers in the Sensex.
Why is the Indian stock market falling today? 3 reasons
According to experts, the Indian stock market is falling for three main reasons: escalation in US-Iran tensions, a rebound in US bond yields, and skyrocketing crude oil prices.
Speaking on the reason for the Indian stock market crash today, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “The Indian stock market is falling today due to the fresh escalation in the US-Iran war. The US President Donald Trump has hinted at fresh strikes in Iran. This has triggered a fresh rally in crude oil prices. The US bond yields have also bounced back from today’s lows.”
US-Iran latest news
According to Al Jazeera, Donald Trump has hinted at a fresh strike in Iran. While talking to local reporters, the US President said that US can either deal with Iran or completely blow them out.
“The escalation in the US-Iran war is negative for the global markets, including Dalal Street, as it would further worsen the crude oil supply in the near-term. It has triggered an uncertainty in the geopolitical arrangement,” said Avinash Goakshkar.
US 10-year bond yield rebounds
The US Treasury yields have rebounded from today’s lows. The US 10-year bond yield has shot up 0.65% to 5.674. The US 30-year bond yield too lost over 0.60% and climbed to 5.674.
“The bounce back in the US Treasury yields is more dangerous, as it would trigger a shift of foreign money from equities to the bond market. As FIIs are already bearish on the Indian equities, soaring US bond yields are something that the market is unable to digest after the escalation in the US-Iran war,” said Anuj Gupta, a SEBI-registered market expert.
Crude oil prices rebound
The SEBI-registered expert said that the escalation in the US-Iran war has triggered fresh buying in crude oil, leading to a sharp rise in the commodity’s price. This is also negative for the markets, as it would hit companies’ margins and profits due to inflation.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
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