No investor would have seen such chaos in the stock market in 11 months, as was seen on Wednesday. Where Sensex closed at the lowest level of 11 months. On the other hand, Nifty 50 appeared at its lowest level in almost 11 months. Due to which stock market investors lost Rs 5.60 lakh crore. On Tuesday, when Trump made a statement that the Gulf War would end soon, there was a rise in the stock market due to its impact.
It was expected that there would be a rise in the stock market in the coming days. But after 11 o’clock on Wednesday once again a decline was seen in the stock market. This decline increased further when Iran said that it would target American companies. Due to which, along with geopolitics, the panic button was pressed in the stock market too and investors started booking profits. Along with the fall in the stock market, there has also been a sharp rise in the prices of crude oil. Let us also tell you what kind of figures are being seen in the stock market.
Stock market closed at the lowest level in 11 months
On Wednesday the stock market closed at the lowest level in 11 months. BSE figures prove this on their own. Bombay Stock Exchange’s main index Sensex closed at 76,863.71 points with a decline of 1.72 percent or 1342.27 points. The special thing is that for the first time after April 15, 2025, the Sensex has closed below 77 thousand points. It last closed at 76,734 points on 15 April 2025. However, during the trading session, the Sensex fell by 1,446.72 points and went to a lower level of 76,759.26 points. However, since February 26, the Sensex has seen a decline of more than 6 percent.
If we talk about Nifty, the main index of the National Stock Exchange, a big decline has been seen in it too. If we look at the data, it closed at 23,866.85 points with a decline of 394.75 i.e. 1.63 percent. However, during the trading sessions, Nifty saw a decline of 427.3 points and appeared at the lower level with 23,834.30 points. By the way, Nifty has closed at this level after 16th April. Then Nifty closed at 23,437.30 points.
Main reasons for the decline in the stock market
- Profit Booking: Profit booking in banking and other sector stocks such as HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finance, Bharti Airtel, Reliance and Mahindra & Mahindra was one of the main reasons for the decline in the equity benchmark. Nifty Bank fell 2.13 percent, while the Financial Services index fell 2.32 percent. Nifty Auto suffered a huge loss of 3.15 percent. Profit booking was seen in the domestic market amid geopolitical risks due to the ongoing war between Iran and the combined forces of US and Israel.
- Rupee slipped below 92: According to Bloomberg data, the Indian rupee fell 24 paise to close at 92.04 per dollar on Wednesday, which affected the market sentiment. The weakness of the rupee may accelerate the outflow of foreign capital, as currency depreciation reduces their returns. Apart from this, the fall of rupee also increases the risk of inflation, which may increase interest rates. According to Jatin Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, the rupee’s expected trading range remains between 91.25 and 92.60, and movement in crude oil prices and the direction of the dollar index will continue to guide the short-term trend of the currency.
- US-Iran war to continue: Even though US President Donald Trump expressed hope on Monday that the US-Iran war could end soon, new aggression is visible in the Middle East. According to AFP, the US military destroyed 16 Iranian boats laying mines near the Strait of Hormuz. The US has warned Iran that it will face unprecedented consequences if it tries to block the movement of ships through the Strait of Hormuz, through which a fifth of the world’s oil supply passes. Meanwhile, the United Nations has warned that if the Strait of Hormuz is closed amid the West Asia conflict, there could be major risks to global growth and inflation.
- Heavy selling by foreign investors: Foreign institutional investors have sold Indian stocks worth more than Rs 32,800 crore in the cash segment in just six sessions in March. FIIs are rapidly selling Indian stocks amid rising US dollar due to high crude oil prices, weak Indian rupee and US-Israeli war with Iran. Notably, FIIs have been selling Indian stocks since July last year due to earnings-valuation mismatch and lack of AI-related themes in India.
- Crude oil fluctuations: Crude oil prices have declined from multi-year highs but remain highly volatile, impacting India’s macroeconomic outlook. After the new threat from Iran, the prices of crude oil are increasing by more than 10 percent and the prices have crossed $ 90 per barrel. According to experts, if the US-Iran war continues for a long time in the coming days and there is a continuous increase in the prices of crude oil, then India’s current account deficit may increase, the currency may weaken further, and corporate profits may reduce. According to media reports, rating agency Moody’s believes that a prolonged war in the Middle East could drag down India’s Gross Domestic Product (GDP) by 1 percentage point and increase interest rates and inflation by 1.5 to 2 percentage points.
Stock market investors lost Rs 5.60 lakh crore
Due to this decline in the stock market, investors have suffered huge losses. Investors’ losses are linked to the market cap of BSE. If we look at the figures, the market of Bombay Stock Exchange was Rs 4,47,04,259.59 crore a day ago, which came down to Rs 4,41,44,345.28 crore on Wednesday. Due to which there was a decline of Rs 5,59,914.31 crore in market cap. This is the loss of stock market investors.