The 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.
Why is the Indian stock market falling?
Let’s take a look at five key factors behind the market selloff:
1. Trump’s aggressive tone on the Iran war
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.
2. Brent crude prices jump
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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