By Admin 
- Stock market fell heavily on Monday, investors lost ₹5 lakh crore.
- Iran-Israel tension increased, crude oil prices increased, dollar strengthened.
- The market fell due to selling by foreign investors and weak rupee.
Share Market Crash: Today was ‘Black Monday’ for stock market investors. Within hours of starting the business, his investments worth crores were lost. Both Nifty 50 and Sensex fell in early trading on Monday.
Weak global signals, rapid selling by foreign investors, increasing geopolitical tension had a negative impact on investor sentiment, due to which the stock market movement also got shaken. Today, due to all-round selling in the market, Sensex fell by almost 800 points and Nifty also slipped near 23100. Due to this huge fall, investors lost Rs 5 lakh crore in just a few hours. Due to this, the total market capitalization of companies listed on BSE reduced to approximately Rs 456 lakh crore.
Increased challenges facing the market
Selling was seen everywhere in the market today. Every stock included in the Sensex was trading with a decline. Apart from the benchmark index, weakness was clearly seen in the market. Both Nifty Midcap 100 and Nifty Smallcap 100 fell by more than 1%, reflecting risk-averse mood among investors.
VK, Chief Investment Strategist, Geojit Investments Limited. Vijayakumar explains, “There are big challenges in front of the market at the beginning of the week. Last Friday, a huge fall of 4.18% in Nasdaq had shaken the global market, due to which there is tremendous selling in tech-heavy South Korea and Taiwan. Crude oil prices have increased due to increasing tension in West Asia and Iran firing missiles on Israel in response to Israel’s action in Lebanon. The price of Brent crude has crossed 96 dollars. The price of Brent crude has crossed $ 96. The jobs figures for the month are also good, hence the expectations of the Federal Reserve (Fed) not cutting the rates are also high.
Reasons for decline in stock market
Tension increased between Iran and Israel- Geopolitical tension has deepened after Iran’s fresh missile attacks on Israel on Sunday night and Israel’s retaliatory action. Due to this there is an atmosphere of uncertainty in the global markets.
Rise in crude oil- Due to increasing tension between Iran and Israel, the prices of Brent crude oil jumped by 3.29% to cross $ 96.15 per barrel. India imports more than 85% of its oil needs. In such a situation, if imports become expensive, there will be a danger of inflation increasing. This may cast dark clouds over the profits of corporate companies.
Decline in American tech market- Last Friday, the US market’s tech index Nasdaq crashed by 4.18% and S&P 500 crashed by 2.64%. The impact of the big fall in Artificial Intelligence and Semiconductor stocks in the American stock market was also visible on the Indian IT sector stocks. Due to this the Nifty IT index crashed by 1.85%.
Selling by foreign investors- Foreign institutional investors (FIIs) are continuously withdrawing money from the Indian market. Due to the strong dollar and high bond yields, foreign funds are turning to safe haven assets like gold. Due to this there is selling pressure in the market.
Rupee weakening- Amidst global tension and strengthening of the dollar, the Indian rupee fell by 38 paise against the dollar today and reached a record low of 95.32. Weak rupee reduces returns for foreign investors, due to which they sell more in the market.
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Share Market: Share market crashed on the first day of the week, Sensex slipped more than 800 points; Nifty also down 286 points