Share Market Crash: Sensex slipped 1,500 points, investors lost Rs 12 lakh crore; Know the 5 big reasons for decline

Share Market Crash Today: Wednesday proved to be no less than a nightmare for the Indian stock market. The direct impact of the turmoil in global markets after the deepening war in West Asia was seen on Dalal Street. In the afternoon session, the Sensex fell 1,451 points or 1.81 per cent to 78,787, while the Nifty fell 476 points or 1.91 per cent to trade at 24,392.

Due to this huge selling, the total market cap of companies listed on BSE decreased by Rs 12 lakh crore to Rs 445 lakh crore. The following five reasons are mainly believed to be responsible for this outcry in the market.

1. Expansion of Iran-Israel war

The main reason for this major weakness in the market is the increasing military conflict between America, Israel and Iran. The attacks on Iran by Israel and America and the targeting of American targets by Iran in retaliation have created fear among investors. The market fears that this war could push the global economy towards recession.

2. Crude oil prices on fire

Fears of supply chain disruptions due to the war have led to a surge in crude oil prices, which have now reached their highest level in four years. WTI Crude has increased by 2.86 percent to $ 76.69 and Brent Crude has increased by 3.16 percent to $ 83.97 per barrel. India imports a major part of its oil needs, so rising oil prices are a negative sign for the Indian market.

3. Rupee at its lowest level

The historic fall of the Indian rupee against the dollar has also broken the back of the stock market. The rupee reached its all-time low of 92.41 on Wednesday. The weak rupee makes imports costlier and affects the sentiment of foreign investors.

4. Heavy selling by foreign investors

Foreign institutional investors (FIIs) are continuously withdrawing their money from the Indian stock market. On Monday itself, FIIs had sold Rs 3,295.64 crore. Although domestic institutional investors (DIIs) tried to manage the market by investing Rs 8,593.87 crore, it proved inadequate in the face of global uncertainty.

5. Rise in India VIX

‘India Vix’ It has increased by 21 percent to the level of 21. Usually, whenever Vix rises, the probability of a huge market decline increases. A higher VIX indicates that traders are expecting more volatility in the market in the coming period.

Also read: Gold-Silver Price Today: Gold and silver prices on fire on Holi, gold became costlier by Rs 2000 and silver by Rs 5500.

Experts believe that unless tensions in West Asia subside, there is little hope of recovery in the market. Investors are being advised to exercise caution in the current situation.