The Indian stock market has been under strong pressure this year due to global headwinds. (An AI-generated image)AI Quick ReadThe Sensex and the Nifty 50 suffered massive losses of over 2% each in morning deals on Thursday, April 2. A day after rising by more than half a per cent, the market benchmarks resumed their downward march after US President Donald Trump's address to the nation.
The Sensex plunged over 1,500 points, or 2%, to an intraday low of 71,608, while the NSE barometer Nifty 50 crashed more than 450 points, or 2%, to the day's low of 22,209.
Investors lost ₹9 lakh crore in a session as the overall market capitalisation of BSE-listed firms dropped to ₹413 lakh crore from ₹422 lakh crore in the previous session.
Let's take a look at five key factors behind the market selloff:
As per reports, while the US President said Washington is nearing the completion of its core objectives in Iran, he added that the US military will carry out aggressive strikes on the West Asian country over the next two to three weeks.
Trump's words on Iran were aggressive, raising fears that tension in the West Asian region may not end soon.
Ahead of the White House speech, Trump asserted on his Truth Social platform that Iran’s president had sought a ceasefire. Tehran swiftly rejected the claim, with its foreign ministry spokesperson describing the remarks as “false and baseless.”
"With President Trump’s declaration, 'we are going to hit Iran extremely hard in the next two to three weeks,' market sentiments have again turned negative. President Trump’s statement cannot be taken at face value, as he has been notoriously inconsistent in his views. He can change his position anytime," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, noted.
Crude oil prices rebounded after Trump's speech, with Brent Crude jumping over 4% to surpass $105 per barrel, while West Texas Intermediate jumped 3% to trade above $103 per barrel.
Crude oil prices jumped after Trump's speech failed to offer clarity on the opening of the Strait of Hormuz, a crucial waterway for global oil trade.
(This is a developing story. Please check back for fresh updates.)
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Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade.
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He is obsessed with breaking down complex financial and economic concepts into clear and engaging stories. He focuses not only on what is happening in the markets, but also why it matters.
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His coverage includes stock market trends, sector rotations, monetary and fiscal policy developments, inflation, growth data, and personal finance strategies.
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With nearly 10 years of experience in covering financial markets, Nishant has covered bull markets, corrections, policy transitions, and macro developments that has equipped him with a deep understanding of how domestic and global forces shape markets and affect investments.
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He regularly interviews market veterans, fund managers, economists, policymakers, and corporate leaders to provide readers with a 360-degree view of market dynamics and the broader economic landscape.
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Before joining Mint, Nishant worked with some of India’s most respected business newsrooms, including The Economic Times and Moneycontrol, where he reported extensively on the stock market, corporate earnings, macroeconomic trends, GDP, inflation, monetary policies of the RBI and the US Federal Reserve, bonds, and currencies.
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Apart from economics and investing, he has interests in geopolitics and emerging technologies, such as AI.