Stock Market crash: Equity benchmark indices Sensex and Nifty 50 were trading sharply lower on Monday, amid weakness in global markets as US-Iran ceasefire talks in Islamabad concluded without an agreement, and crude oil prices surged hitting the investor sentiment.
At 09:50 AM, the BSE Sensex benchmark was down 1,390 points, or 1.8 per cent, at 76,160 levels. The NSE Nifty50 slipped below the 24,000 mark again as it fell 409 points, or 1.7 per cent, to trade at 23,641.65 levels.
The Sensex touched a low of 75,868, down 1,682 points, or 2 per cent. Likewise, the Nifty 50 hit an intraday low of 23,555, down 495 points, or 2 per cent. On the sectoral front, all the indices were trading in the red, with Nifty Auto, Bank, and Oil & Gas falling more than 3 per cent each. The Nifty IT, Financial Services, FMCG, Media, Metal, Pharma, Realty, and Healthcare indices were the other major laggards.
In the broader markets, Nifty Midcap 100 fell 1.31 per cent, and Nifty Smallcap 100 cracked 1.32 per cent.
Meanwhile, India VIX spiked sharply to the 20.99 level, up by more than 11 per cent, indicating heightened volatility and caution in the near term.
Here’s why markets are falling today:
US-Iran ceasefire talks fail: The United States and Iran failed to reach a ceasefire agreement after nearly 21 hours of overnight talks in Pakistan. US Vice President JD Vance blamed the collapse on Iran’s unwillingness to give up its nuclear programme, while Iran accused Washington of making excessive demands. The lack of progress has raised concerns that the conflict could drag on longer than expected.
VK Vijayakumar, chief investment strategist at Geojit Investments, said with the failure of US-Iran peace talks and Trump’s declaration of US naval blockade in the Strait of Hormuz, uncertainty and along with it crude price have spiked. Brent at $103 is emerging as yet another threat to the economy and markets, he added.
"How this naval blockade, which in effect will be a US blockade of Iran’s blockade, will play out remains to be seen. There can be dramatic developments on the geopolitical front and consequently on markets also. The ideal strategy in this ultra-uncertain situation is to wait and watch," he said.
Oil prices surge: Oil prices topped the $100 mark amid escalating tensions, after the US moved to block the Strait of Hormuz and restrict access to key Iranian ports. The disruption has left several oil tankers stranded in the Gulf, intensifying fears of supply constraints and a prolonged energy crisis, which is weighing on global market sentiment.
Last checked, the global benchmark Brent crude was up 7.25 per cent at $102.10 per barrel, and US WTI crude rose 8.34 per cent to $104.64 per barrel.
Ponmudi R, chief executive officer at Enrich Money, said the US oil prices are trading near the $105 zone, recovering from recent lows near $93 on the back of evolving Middle East developments. "A sustained move above $107.5 could accelerate the rally toward $110 and potentially beyond, while a decisive break below $100 opens the path toward $95, with strong support at $93. The near-term outlook remains bullish as long as prices hold above the key $100 level," he added.
Weak global cues: Amid heightened uncertainty, Asian markets were trading lower as investors assessed the impact of the US naval blockade on Iran’s ports. It has raised worries that the US-Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
Last checked, Japan's Nikkei 225 index, Hong Kong's Hang Seng and South Korea's KOSPI were down 1 per cent each.
Rupee depreciation: The Indian rupee fell sharply on Monday morning, falling 48 paise to 93.31 against the US dollar, as the greenback strengthened. The currency had earlier seen a strong recovery in the first two weeks of April after the RBI stepped up support measures, including restricting banks from offering rupee non-deliverable forwards to clients and curbing the rebooking of cancelled forward contracts by companies.
According to Ponmudi, a sustained move above 93.70 could extend gains toward the 94.00–94.30 range, while 92.60 serves as immediate support, with a stronger base at 92.30. The near-term structure points to a bias toward further rupee depreciation amid escalating geopolitical tensions.