Fall in stock market today: Indian equity benchmarks, Nifty 50 and BSE Sensex, fell in morning trade on Thursday as global cues turned negative due to a host of factors. While Nifty 50 fell below 23,800, BSE Sensex fell by nearly 1,200 points. At 11:18 am, Nifty 50 was trading at 23,810.30, down 367 points or 1.52%. BSE Sensex was down 1,196 points or 1.54% at 76,300.04.The surge in crude oil prices, record decline in rupee and other adverse global developments weighed heavily on investor sentiments.The steep fall wiped off nearly Rs 9 lakh crore from the combined market capitalization of BSE-listed companies, reducing it to around Rs 460 lakh crore, ET reported.Track Live | Movement of Sensex and Nifty todayThe selloff was widespread, extending beyond large-cap stocks to the broader market. The Nifty Smallcap 100 index was down 0.5%, while the Nifty Midcap 100 index fell more than 1%. India VIX, which measures market volatility, rose nearly 5% to 18.29, reflecting increased uncertainty.According to VK Vijayakumar, chief investment strategist, Geojit Investments, the market is currently facing two important challenges. Firstly, Brent crude hovering around $120 per barrel is a serious threat to India’s macroeconomic stability. Prolonged high oil prices could weaken growth prospects and increase inflationary pressures.Second, stronger-than-expected earnings from leading artificial intelligence companies in the United States and South Korea may further boost the global AI investment theme. This could lead to continued portfolio outflows from India, creating additional pressure on domestic markets.
Why is the stock market falling today? top reasons
Trump warns of prolonged blockadeInvestor concerns grew after US President Donald Trump indicated that the US blockade of Iranian ports through the Strait of Hormuz could continue for months, as diplomatic efforts remain deadlocked.Although Iran has reportedly made a new proposal aimed at ending the ongoing conflict, Trump is not convinced. Crude oil went above $ 120 per barrelOil prices rose sharply amid rising geopolitical tensions, surpassing the $120 per barrel mark for the first time since Russia’s 2022 invasion of Ukraine. Brent crude futures rose nearly 4% to about $123 a barrel in early trading Thursday.Crude oil has seen a strong rise after slipping below $100 earlier this month. Prices moved above that key range last week after new attacks near the Strait of Hormuz, raising fears of potential supply disruptions in the strategically important shipping route.US Federal Reserve adopted harsh toneThe US Federal Reserve left interest rates unchanged, but the policy decision was the most divided in more than three decades. Three policymakers dissented, objecting to guidance indicating a bias toward future rate cuts.In its statement, the Fed said recent developments in the Middle East have increased uncertainty about the economic outlook. Rupee falls to record lowThe Indian rupee weakened further on Thursday to hit a new all-time low of 95.07 against the US dollar.Jatin Trivedi, vice president of commodities and currencies and research analyst at LKP Securities, had cautioned that the domestic currency was being weighed down by continued outflows from foreign institutional investors coupled with higher crude oil prices.Global stocks under pressureMost major global equity markets traded lower as a sharp rise in oil prices weighed on investor sentiment. Japan’s Nikkei fell more than 1.2%, while Hong Kong’s Hang Seng fell more than 1.3%. South Korea’s Kospi also slipped about 0.5%. In contrast, China’s Shanghai Composite managed to remain stable and was trading marginally higher.European markets had already ended the previous session with significant losses, with the UK’s FTSE 100 falling more than 1%. In the United States, Wall Street ended on a mixed note. While the broader market remained largely unchanged, the Nasdaq managed to close slightly higher.(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management are their own. These opinions do not represent the views of The Times of India)
