The Sensex and the Nifty 50 declined in intraday trade on Monday, July 13, after US-Iran ceasefire talks failed. (An AI-generated image)AI Quick ReadStock market today: After clocking an impressive about 6% gain last week, the Indian stock market benchmarks- the Sensex and the Nifty 50- started the week with deep cuts, falling over 2% in morning trade on Monday, April 13.
The Sensex crashed over 1600 points, or more than 2%, to an intraday low of 75,937, while the NSE benchmark Nifty 50 plunged 500 points, or 2%, to the day's low of 23,556.
The selloff engulfed all segments of the market, as the Nifty Midcap 100 and Smallcap 100 indices also plunged more than 2% each.
Investors lost about ₹8 lakh crore within minutes as the overall market capitalisation of BSE-listed firms was at ₹443 lakh crore around 9:20 am compared to ₹451 lakh crore in the previous session.
Let's take a look at five key factors behind the fall in the Indian stock market today:
The ceasefire talks between the US and Iran over the weekend ended without a deal, which dashed hopes that one of the most pressing issues in global markets in recent history—the US-Iran war—would end with an amicable solution. Adding to the uncertainty, the US plan to blockade the Strait of Hormuz has intensified fears of a global energy supply shock.
There is much uncertainty about how the situation in West Asia will evolve going ahead. At present, the market is concerned that a prolonged war in the region could deal a severe blow to global economic growth this year, and its lasting impact on the economy could lead to subdued market performance in 2026.
Media reports suggest US President Donald Trump is back with the tariff rhetoric against China.
Trump on Sunday reportedly targeted China and said that if Beijing supplies weapons to Iran, it would get a 50% tariff.
"I doubt they would do that... but if we catch them doing that, they get a 50% tariff, which is a staggering amount," Fox News quoted Trump as saying.
Brent Crude prices jumped over 8% to trade near the $103 per barrel, while the US West Texas Intermediate (WTI) crude futures also rallied more than 8% to $105 per barrel after the US-Iran peace talks failed to reach a deal and the US said it will block the Strait of Hormuz, a vital waterway for global crude oil supply.
Crude oil prices have been at higher levels for over a month now. Economists say if prices remain at elevated levels for more than two months, it will be a significant negative for the Indian economic growth and will increase inflationary risks.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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.