Stock market crash today: Continuing the down trend, Nifty50 and BSE Sensex tanked in trade on Friday as oil prices climbed and the Strait of Hormuz closure halted important global trade. While Nifty50 went below 23,250, BSE Sensex was down over 1,200 points. At 12:54 PM, Nifty50 was trading at 23,220.60, down 419 points or 1.77%. BSE Sensex was at 74,772.08, down 1,262 points or 1.66%.The benchmark indices are headed for their steepest weekly fall in over a year as the ongoing conflict involving Iran, Israel and the United States, along with other factors, continued to dampen investor sentiment.The heavy selling led to a sharp erosion in market value, with the total market capitalization of companies listed on the BSE shrinking by nearly Rs 8 lakh crore to around Rs 431 lakh crore, according to an ET report.Shares of L&T, Tata Steel, UltraTech Cement, Bharat Electronics, Kotak Mahindra Bank and Axis Bank were among the biggest drags on the Sensex, registering declines of 3% to 6%. Hindustan Unilever was the only stock in the index trading in positive territory.
Why is stock market down today? Top reasons
Iran-Israel conflict intensifiesThe escalating conflict in the oil-rich Middle East remained a major concern for markets. Despite reassurances from the US administration, hostilities between Iran, Israel and the United States continued to intensify as the conflict approached its second week on Friday.Reports indicated that an Iranian drone struck fuel storage facilities near Bahrain International Airport on Muharraq Island, sparking a large fire. Tensions and military activity were also reported from other parts of the region, adding to concerns in global markets.Oil climbs above $100 againCrude oil prices moved back above the $100 per barrel level as the conflict involving Iran and Israel along with the United States continued without any sign of easing. The surge followed remarks from Iran’s new supreme leader indicating that the Strait of Hormuz would remain closed to maritime traffic.Mojtaba Khamenei, Iran’s new supreme leader and son of Ayatollah Khamenei, described the Strait of Hormuz as a strategic “tool of pressure” that should stay shut during the conflict. Speaking on state television, Mojtaba Khamenei also cautioned that US military bases across the region could face attacks as Iran seeks retaliation for casualties resulting from the war.Oil prices rose sharply as expectations increased that the Strait of Hormuz could remain closed for an extended period. The latest increase in prices comes despite steps taken by the Trump administration to ease supply pressures. Washington recently issued a 30-day licence permitting countries to purchase Russian crude and petroleum products currently stranded at sea. In addition, the US Energy Department announced plans to release 172 million barrels of oil from the Strategic Petroleum Reserve as part of a broader initiative coordinated by the International Energy Agency to release 400 million barrels in total to stabilise markets.Global markets downGlobal equity markets also remained under pressure, with several Asian indices trading lower. Japan’s Nikkei 225 and South Korea’s Kospi both declined by more than 1%. Hong Kong’s Hang Seng slipped about 0.55%, while China’s Shanghai Composite fell 0.25% as of 8.45 am IST.In the previous session, US and European markets also recorded notable losses. The S&P 500 dropped over 1.5%, while the Nasdaq slid 1.8%. In Europe, the UK’s FTSE index declined 0.5%, Germany’s DAX fell 0.2% and France’s CAC index dropped 0.72%.Rupee slips to a new record lowThe Indian rupee weakened to a fresh record low of 92.4325 against the US dollar. The currency has come under considerable pressure in recent days, declining about 1.5% since the conflict involving Iran, Israel and the United States began.Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said movements in crude oil prices remain a major factor influencing the rupee, as higher oil costs tend to increase India’s import bill and exert downward pressure on the currency.“For now, the expected trading range for the rupee is 91.45–92.75,” the analyst said, adding that market participants will closely watch US initial jobless claims and US GDP data.Bond yields move higherUS Treasury yields rose sharply on Thursday, with the two-year yield reaching its highest level in six months. The increase came as Iran stepped up attacks on energy and transportation infrastructure in the Gulf, driving oil prices higher and raising concerns that inflation could re-emerge, potentially forcing interest rates in the United States to remain elevated for longer.The yield on the benchmark US 10-year Treasury note climbed by 4.9 basis points to 4.255%, marking its highest level since February 5.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
