Why is the Indian stock market falling? Top factors behind 900-point Sensex crash, Nifty below 24,900

Time of India

2 days ago

Indian benchmark indices
Sensex
and Nifty declined sharply on Thursday as investors reacted to a cocktail of global uncertainties, including escalating tensions in the Middle East and a cautious tone ahead of the weekly F&O expiry. The sell-off was led by IT stocks, with benchmark indices slipping nearly 1% in intraday trade.
The
BSE
Sensex slumped over 900 points, to the day's low of 81,605.82 around 2:06 PM, meanwhile, the
NSE
Nifty fell nearly 250 points to slip below the 24,900 level. The market capitalisation of all listed companies on the BSE shrank by Rs 4.19 lakh crore to Rs 451 lakh crore, reflecting broad-based selling across sectors.
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Undo
Below are the key factors weighing on sentiment:
1) Middle East tensions escalate
Investors turned risk-averse following a string of developments pointing to a deteriorating security situation in the Middle East.
U.S. President Donald Trump said on Wednesday US personnel were being moved out of the Middle East because "it could be a dangerous place," adding that the United States would not allow Iran to have a nuclear weapon.
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Reuters reported that the U.S. is preparing a partial evacuation of its embassy in Iraq and will allow military dependents to leave locations across the region due to rising threats, citing both American and Iraqi officials.
The timing is particularly sensitive as, according to U.S. intelligence, Israel is reportedly preparing for a potential strike on Iran's nuclear facilities. At the same time, Iranian Defence Minister Aziz Nasirzadeh warned that 'if Iran was subjected to strikes it would retaliate by hitting U.S. bases in the region.'
Regional markets mirrored the tension. Saudi Arabia's benchmark index fell 1.3%, dragged down by heavyweights like Al Rajhi Bank, which slipped 0.6%, and Saudi Aramco, which was down 0.4%. Dubai's main share index recorded its steepest intraday fall since April, losing 1.7%, with Emaar Properties tumbling 3%.
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