Stock Market Crash: Sensex Sinks 950 Pts, Nifty Falls Over 265 Pts | Why Stock Market Is Down Today?
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Stock Market Crash Today: The Indian stock market benchmark indices, Nifty and Sensex continued to free fall for during Thursday’s opening session, after their massive crash in the previous session. Geopolitical tensions, weakness across global markets, Indian Rupees poor performance, and continued foreign institutional investors’ selling were some of the key reasons that contributed to the stock market crash today.
Nifty 50 opened lower at 23,674.85 points lower on Thursday, March 12 and was down 268 points at 9:32 am. BSE Sensex tanked 946 points duringt the stock market opening session.
What Triggered Stock Market Crash Today?
The continued heavy-selling in the Indian stock market today was the result of Middle East tensions due to the ongoing Iran-US-Israel war, and a host of other factors.
Iran-US-Israel War
Despite US President Donald Trump’s hint that the Iran-US-Israel war may end soon, continued air strikes on Iran and reports of attacks in the Middle East has continued to keep investors on edge.
Despite comments from Donald Trump suggesting that the ongoing Iran-Israel-US conflict could end soon, continued air strikes on Iran and reports of fresh attacks across the Middle East have kept investors on edge. The US and Israel reportedly carried out some of the war’s heaviest strikes on Iran.
Iran’s authorities responded with strong warnings and fresh attacks as the confrontation entered its 12th day. Officials stated that security forces were ready with “fingers on the trigger” to counter any renewed domestic protests, while Iranian strikes targeted locations in Israel, Lebanon and the Gulf during early Wednesday hours.
Weakness In Indian Rupee
The Rupee is seeing sharp decline since the beginning of the week due to geopolitical tensions and concerns around fuel supply shortage in India. The rupee also weakened, adding another headwind for Indian stock markets, Sensex and Nifty 50.
Continuing its weak performance, the Indian rupee opened lower on Thursday. The domestic currency opened at 92.98 per dollar, which was 24 paise lower from its previous close of 92.04 on Wednesday. Market participants are watching whether the rupee stabilises, as it has now repeatedly closed beyond the key 92-per-dollar threshold.
FII Selling
Foreign portfolio investors extended their selling streak, exerting more pressure on Indian stock markets, including Sensex and Nifty 50. Provisional data showed net selling of Indian shares worth Rs 4,672.64 crore on Tuesday, continuing an offloading trend that has weighed on domestic sentiment for several sessions.
FPIs dumped Indian equities worth more than Rs 21,800 crore in the first week of March, after remaining net buyers during February. Persistent outflows have kept traders cautious, as large overseas investors often influence index direction, especially during periods of sharp market moves and currency weakness.
Crude Oil Price Volatility, Concerns of LPG, Petrol Supply Shortage in India
Crude oil price continued to remain volatile in the past two to three days. The sharp volatility in crude oil prices came as the global oil trade from the Strait of Hormuz continues to remain affected due to the Iran-US war.