Amidst the ever increasing tension in the Middle East, there was a big fall in the stock market which opened on Monday. The stock market opened with a fall of more than 2700 points and investors lost Rs 17.50 lakh crore. The decline in the stock market was already being predicted. Investor sentiment was already down. Experts believe that due to the increasing tension in the Middle East, a big decline in both Sensex and Nifty may continue in the coming days. Even though both Sensex and Nifty have shown recovery and are trading with a decline of 1100 points, but in the opening, Sensex and Nifty have indicated that the impact of Middle East tension may be seen deepening on the stock market in the coming days. Let us also tell you what kind of figures are being seen in the stock market.
stock market crashed
The kind of speculations that were being made that there could be a decline in the stock market on Monday, the same was seen. On Monday, the main index of Bombay Stock Exchange, Sensex, opened with a decline of 3.30 percent i.e. 2,743.46 points and the Sensex opened at 78,543.73 points. This is also the biggest lower level of the day. The special thing is that on April 21, 2025, the Sensex was last seen at the level of 78,500 points. This means that the Sensex has appeared at its lowest level in about 11 months. However, at 9.35 am, the Sensex is seen trading at 80,582.13 points with a fall of 705.06 points.
On the other hand, the main index of National Stock Exchange Nifty 50 also opened with a big fall. If we look at the data, Nifty saw a decline of 533.55 points during the trading session and appeared at the lower level with 24,645.10 points. However, Nifty opened with a fall of more than 525 points and appeared at 24,659.25 points. If we look at the data, Nifty was trading at 24,945.10 points with a fall of 232.55 points at 9.40 am. After October 1, Nifty has appeared at the level of 24,600 points.
Big fall in these shares
Indigo, Larsen & Toubro (L&T), Eternal, Adani Ports and Asian Paints were among the top losers on the Sensex, falling in the range of 2-4 per cent. Bharat Electronics shares were the only ones to rise a little more than 1 per cent as rising geopolitical tensions boosted investor sentiment for defense stocks. Among sectoral indices on NSE, Nifty Realty was the top loser, falling nearly 2 per cent, while Nifty Auto, Nifty IT, Nifty PSU Bank, Nifty Consumer Durables and Nifty Oil & Gas declined more than 1 per cent.
War escalates in the Middle East
The war in the Middle East escalated after the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei. The 86-year-old leader died over the weekend, it is being said that the US and Israel launched a missile attack on him. Four members of his family, including his daughter and a grandson, were killed. After this, Iran launched retaliatory attacks in large areas of the Middle East, due to which large-scale hostility spread in the oil-rich area of the Middle East.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that the uncertainty related to the war in West Asia will soon weigh heavily on the market. Meanwhile, Kranti Bathini of Wealth Mills Securities said that no one expected the increasing tension in the Middle East, especially the UAE. Therefore, it will have a negative impact on the financial market in the short-to-medium term.
Rise in crude oil prices
Crude oil prices surged, with Brent crude rising 6 per cent to $77.08 per barrel and WTI crude rising 5.5 per cent to $70.71 per barrel by 9.30 am. More than 20 percent of the world’s oil passes through the Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Heavy missile attacks around the region have increased concerns about supply disruptions, leading to a rise in oil prices.
Barclays, the UK’s second-largest bank, on Saturday raised its forecast for Brent crude oil futures to $100 a barrel. The bank said in its report that oil markets may have to face their worst fears on Monday. As things stand now, we believe Brent could reach $100 per barrel as the market faces the threat of supply disruptions amid the deteriorating security situation in the Middle East.
Investors lost Rs 17.50 lakh crore
The special thing is that due to the big fall in the stock market, investors lost Rs 17.50 lakh crore. The loss and profit of investors depends on the market cap of BSE. If we look at the data, when the stock market closed with a decline on Friday, the market cap of BSE was Rs 4,63,50,671.27 crore, which came down to Rs 4,45,91,660.60 crore as soon as the stock market opened on Monday. This means that there was a decline of Rs 17,59,010.67 crore in the market cap of BSE. This is the loss for stock market investors.