The Indian stock market suffered massive losses in early deals on Monday, March 9, due to a sharp selloff across sectors amid rising tensions in West Asia (Middle East), a steep rise in crude oil prices, and weak global cues.
The Sensex crashed nearly 2,200 points, or almost 3%, to an intraday low of 76,733, while the Nifty 50 sank near the 23,800 level, plunging 2.6%. The mid and small-cap indices on the BSE crashed more than 2% each during the session.
Investors lost ₹12 lakh crore within minutes, as the overall market capitalisation of BSE-listed firms dropped to nearly ₹438 lakh crore from ₹450 lakh crore in the previous session.
Why is the stock market falling? 5 key factors explained
1. Crude oil prices vault above $115
surged over 26% to $117.16 per barrel for the first time since 2022 due to the US-Iran war and the consequent disruption to shipping through the Strait of Hormuz, with major oil producers in the Middle East cutting supplies.
India, which is the world’s third-largest importer of, imports about 85-90% of its crude oil requirements. According to economists, every $1 increase in the per-barrel price of crude oil raises the country’s import bill by roughly ₹16,000 crore.
A sharp surge in crude oil prices can flare up inflation, further weaken the Indian rupee, widen the current account deficit, and puncture the momentum of Indian economic growth. This may impact corporate profitability.
A prolonged period of elevated crude oil prices may even force the Reserve Bank of India (RBI) to shift its policy stance to a hawkish one.
(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.