- Indian equity benchmarks opened sharply lower after closing at a high last week
- Investors lost over Rs 4 trillion within an hour of Monday's trading session
- US-Iran ceasefire talks failed after nearly 21 hours of negotiations in Islamabad
Stock Market Crash Today: Indian equity benchmarks opened in deep red on Monday morning after closing at a high last week. While a decline was anticipated as the US-Iran peace talks fell apart over the weekend, a section of investors weren't expecting a gap-down opening. Follow Live Updates
Within an hour of the beginning of the trading session, investors lost over Rs 4 trillion. At the close on Friday (April 10), the total market capitalisation of all BSE Sensex companies stood at Rs 4,51,61,647. By 10:40 am on Monday (within one hour and a half), it fell down to Rs 4,47,86,459.
Here Are The Top 3 Reasons Behind Market Rout:-
US-Iran ceasefire talks fail: Talks between the US and Iran failed after nearly 21 hours of overnight talks in Islamabad. Iran and the US could not agree on multiple points.
Oil prices surge: Prices jumped after the United States Central Command (part of US Department of Defense) said it would enforce a naval blockade around Iranian ports. US crude (West Texas Intermediate) rose 8 per cent to $104.24 a barrel. Brent crude jumped 7 per cent to $102.29.
Weak global cues: Australia's ASX 200 slipped 0.41 per cent. Hong Kong's Hang Seng fell 0.71 per cent, while Japan's Nikkei 225 declined 0.74 per cent. South Korea's Kospi dropped 0.90 per cent. China's Shanghai Composite was also flat.
Markets Outlook This Week
Geopolitical tensions have impacted crude oil, currency movement, and global risk perception -- all leading to volatile market conditions. Sharing his market outlook for this week (April 13-18), Siddharth Maurya, Managing Director, Vibhavangal Anukulkara, said, "For the coming week, expect markets to be cautiously optimistic with significant intraday volatility as investors factor in inflation concerns and economic policies due to higher energy prices."
He added, "Input cost-sensitive sectors, such as aviation, paints, logistics, and manufacturing, may experience short-term volatility while defensives, like FMCG and IT, may find some selectivity in their performance. Despite this, domestic investments and retail investor involvement offer support against any significant downside risk."
As far as investment strategies go, the current period does not call for panic but selectivity, said Maurya. "Investors must pick fundamentally sound companies with price-setting ability and steer clear of heavily leveraged and sentiment-based stocks. The stabilisation of global factors can soon reverse investor sentiments, turning this market into a news-driven one."
