The Indian stock market experienced a major meltdown, with the Sensex plummeting over 2,200 points and the Nifty falling below 22,200, wiping out nearly ₹14 lakh crore in investor wealth. The panic selloff was triggered by a combination of global and domestic factors that shook investor confidence.
A major contributor to the market rout was the escalating tensions in the Middle East, particularly concerns over Iran-Israel conflict escalation, which pushed global crude oil prices higher and raised fears of geopolitical instability. Additionally, strong U.S. job data raised expectations of delayed interest rate cuts by the Federal Reserve, dampening global investor sentiment.
Domestically, weak quarterly earnings by key companies added to the nervousness, along with persistent concerns around inflation and upcoming elections in India. Continuous foreign institutional investor (FII) outflows also weighed heavily on market sentiment, with investors moving capital to safer assets.
Banking, IT, and metal stocks were among the hardest hit in today’s crash, with heavyweights like HDFC Bank, Infosys, and Reliance Industries witnessing sharp declines. The volatility index (VIX) also surged, reflecting heightened market anxiety.
Experts suggest that while this drop may offer a buying opportunity for long-term investors, short-term volatility is likely to continue amid uncertain global cues.
