The Indian stock market crashed on Monday as the Sensex plunged over 1,550 points to 72,977, and the Nifty 50 dropped nearly 500 points to 22,634.
Midcap and smallcap indices also fell more than 2%, erasing Rs 8 lakh crore in investor wealth within minutes.
The sharp decline followed escalating geopolitical tensions. The US-Iran conflict intensified after threats over the Strait of Hormuz and reports of missile launches targeting US-UK bases. Global markets reacted negatively, with Asian indices sliding more than 3%.
Crude oil prices added to the pressure. Brent hovered near $113 per barrel, while WTI traded close to $99. Elevated prices raised concerns for India, a major oil importer, as inflation risks, rupee weakness, and widening deficits loom large.
Foreign portfolio investors continued heavy selling. Outflows in March already crossed Rs 90,000 crore, driven by weak global cues and lower returns from Indian equities. Analysts warned that persistent selling could weigh further on growth and earnings.
Volatility spiked sharply. India VIX jumped nearly 10% to 25.03, signalling heightened fear among traders. Market sentiment weakened further as global uncertainty mounted.
The combination of geopolitical risks, surging crude, and relentless FPI outflows created a perfect storm for Indian equities. Investors now brace for continued volatility as global tensions show no signs of easing.
