Sensex crashes 700 points, Nifty 50 drops below 23,650; investors lose ₹4 lakh crore. Why is market falling? Explained
AI Summary
The Indian stock market experienced a significant selloff on July 24, with the Sensex and Nifty 50 both dropping nearly 1%, resulting in a loss of approximately ₹4 lakh crore in market capitalization. The decline was driven by rising crude oil prices, which have surged nearly 40% in July, raising concerns over inflation and corporate earnings in India. Additionally, geopolitical tensions related to the US-Iran conflict have further dampened market sentiment.
The Indian stock market witnessed a sharp selloff in morning trade on Friday, 24 July, with the benchmarks, the Sensex and the Nifty 50, falling almost 1% each.
The 30-share pack crashed nearly 800 points, or 1%, to hit an intraday low of 75,613, while the NSE counterpart Nifty 50 shed over 200 points, or 1%, to touch the day's low of 23,647.
The selloff was broad-based as the Nifty Midcap 100 and the Nifty Smallcap 100 indices also declined nearly 1%.
Investors lost about ₹4 lakh crore within minutes as the overall market capitalisation of BSE-listed firms dropped to ₹473 lakh crore from nearly ₹477 lakh crore in the previous session.
Here are five key factors behind the fall in the Indian stock market
Crude oil prices extended gains for the sixth consecutive session on Friday, with Brent crude September Contract touching the $101 per barrel mark. So far this week, Brent crude has gained 15% after a 16% jump in the previous week. After falling for the last three consecutive months, Brent crude is now up nearly 40% so far in July.
Rising oil prices have revived concerns over their negative impact on the Indian economy, inflation trajectory, and corporate earnings, weighing on stock market sentiment.
The market is anxious as the end of the ongoing US-Iran conflict is not in sight. As per media reports, US President Donald Trump is considering launching a new major military operation against Iran. Meanwhile, the US military said late on Thursday it completed its latest round of strikes on Iran that marked a 13th consecutive night of American attacks.
(This is a developing story. Please check back for fresh updates.)
Disclaimer: This article is for educational purposes only and does not constitute investment advice. 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.
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