Stock 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 crashed nearly 1,700 points, or more than 2%, to an intraday low of 75,868, 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.
Why is the Indian stock market falling?
Let’s take a look at five key factors behind the fall in the Indian stock market today:
1. The US-Iran talks fail to yield a positive outcome
The 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.
2. Trump’s tariff threat against China
Media reports suggest US President Donald Trump is back with the 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.
3. Crude oil prices back above $100 per barrel
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 that if prices remain at elevated levels for more than two months, it will be a significant negative for Indian economic growth and will increase inflationary risks.
(This is a developing story. Please check back for fresh updates.)
Read all market-related news
Read more stories by
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.