Escalating geopolitical tensions and weak global cues triggered a significant stock market downturn in India, wiping out ₹16.32 lakh crore of investor wealth in just two days.
IMAGE: Kindly note that this image has been posted for representational purposes only. Photograph: Danish Siddiqui/Reuters
Key Points
- Indian stock market crashes, leading to a ₹16.32 lakh crore loss for equity investors in just two days.
- The BSE Sensex tumbled significantly due to escalating geopolitical tensions involving the US, Israel, and Iran.
- Weak global cues, high crude oil prices, and foreign institutional selling contributed to the negative market sentiment.
- Metal, PSU Bank, and industrial sectors experienced the most significant declines in the stock market.
- Asian markets also faced deep cuts, reflecting widespread investor concerns about global economic stability.
Equity investors became poorer by Rs 16.32 lakh crore in the two-day fall in the stock market after the conflict involving the US, Israel and Iran escalated significantly.
On Wednesday, the 30-share BSE Sensex tumbled 1,122.66 points or 1.40 per cent to settle at 79,116.19. During the day, it crashed 1,795.65 points or 2.23 per cent to 78,443.20. Since Friday, the BSE benchmark has lost 2,171 points or 2.67 per cent amid the onset of hostilities between Iran and the US-Israel since February 28.
The market capitalisation of BSE-listed companies eroded by Rs 16,32,428.12 crore to Rs 4,47,18,243.15 crore (USD 4.85 trillion) since Friday last week.
Equity markets were closed on Tuesday for Holi.
“Markets traded with a negative bias on Wednesday, extending their recent corrective trend amid weak global cues and persistent geopolitical concerns. Investor sentiment remained fragile amid weak global signals, elevated crude oil prices and lingering uncertainty around geopolitical developments. Continued foreign institutional selling and currency volatility further dampened confidence,” Ajit Mishra, SVP Research, Religare Broking, said.
Brent crude, the global oil benchmark, jumped 1.63 per cent to USD 82.73 per barrel.
From the Sensex pack, Tata Steel tanked 6.76 per cent, followed by Larsen & Toubro (4.53 per cent). Bajaj Finance, UltraTech Cement, NTPC, InterGlobe Aviation, Bajaj Finserv and Hindustan Unilever were also among the laggards.
Bharti Airtel, Infosys and Tech Mahindra were the gainers.
The BSE smallcap select index tumbled 2.42 per cent and midcap select index dropped 2.10 per cent.
Sectoral Performance
Among sectoral indices, metal plunged 4 per cent, BSE PSU Bank (3.50 per cent), industrials (3.29 per cent), realty (3.16 per cent), commodities (3.12 per cent), capital goods (2.64 per cent), power (2.59 per cent), services (2.25 per cent) and energy (2.23 per cent).
A total of 3,245 stocks declined, while 1,053 advanced and 135 remained unchanged on the BSE.
Global Market Impact
Asian markets ended with deep cuts. South Korea’s Kospi tumbled 12 per cent. Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also ended significantly lower.
