Share market crash wipes out ₹10 lakh crore of investors’ wealth, these reasons behind sensex-nifty fall

Mumbai (The Uttam Hindu): Thursday turned out to be a nightmare for stock market investors as heavy selling pressure caused a sharp fall in the markets. As soon as trading began, a strong wave of selling pushed both the Sensex and Nifty sharply downward. Investors who had put their hard-earned money into the market expecting profits suffered significant losses.

After a volatile trading session, the Sensex closed 829 points lower at 76,034, while the Nifty slipped 227 points to settle at 23,639. Midcap and smallcap stocks also recorded declines amid the widespread market fall.

₹10 lakh crore wiped out, fear spreads across market

Due to Thursday’s heavy sell-off, investors lost nearly ₹10 lakh crore in market wealth within just a few hours. The total market capitalization of companies listed on the Bombay Stock Exchange (BSE) dropped from about ₹450 lakh crore to nearly ₹440 lakh crore.

Meanwhile, the India VIX index—considered the market’s “fear gauge”—also surged nearly 6 percent to reach 22.32, indicating rising panic among investors.

Crude oil prices surge after Iran attack fears

One of the major factors behind the fall in the Indian market has been the sharp rise in crude oil prices. Reports of Iran attacking oil-carrying ships in the Strait of Hormuz pushed international Brent crude prices up by nearly 9 percent, bringing them close to $100 per barrel.

The situation has raised concerns over global energy supply chains. Although the International Energy Agency (IEA) announced the release of emergency oil reserves for the first time in history, it had little impact on prices. Since India imports most of its oil requirements, rising crude prices directly increase inflationary pressure on the economy.

Fear of Trump’s trade war policy and foreign investor outflow

Another major reason behind the market decline is the pressure from global markets and the strict trade policies of US President Donald Trump. The United States has launched a new investigation into “unfair trade” practices against 16 countries including India, raising concerns about the global trade environment.

Amid this uncertainty, foreign institutional investors (FIIs) have been pulling money out of Indian markets. In March alone, foreign investors have withdrawn more than ₹39,100 crore so far. Continuing their selling streak for the ninth straight day, they sold shares worth ₹6,267 crore.

Rupee fall adds to economic worries

The surge in crude oil prices and continued foreign fund outflows have also impacted the Indian currency. On Thursday, the rupee weakened by 30 paise against the US dollar to reach 92.34.

This level is close to the rupee’s all-time low. A weakening rupee is considered a major concern for both the economy and common citizens as it increases the country’s import bill and raises the risk of a higher current account deficit.