Stock Market Crash: The continuously weakening rupee against the US dollar and heavy selling by foreign institutional investors (FIIs) have further increased the pressure on the market.

Stock market drops sharply amid Iran war

Stock Market News: The rising tensions in the Middle East have severely affected the Indian stock market. Amid the surge in crude oil prices and a sharp fall in the rupee, there is panic among investors. On the first trading day of the week, the 30-share BSE Sensex fell by nearly 1900 points, while the NSE Nifty 50 also fell below 22,500. However, by evening, the Sensex fell by 1836 points and closed below 73,000. The Nifty also fell by 601 points and fell below 22,600.

The rupee's continued weakening against the US dollar and heavy selling by foreign institutional investors (FIIs) have further increased market pressure. On the other hand, the price of one dollar has now risen to 93.99 rupees.

Why are markets falling?

During trading, the Sensex fell 1,930 points to 72,601 at 12:28 pm, while the Nifty 50 also fell to 22,494. Due to heavy selling, the total market capitalization of BSE-listed companies fell by approximately ₹13 lakh crore to ₹416 lakh crore. Among the 30 Sensex companies, InterGlobe Aviation, Titan, UltraTech Cement, Trent, Bharat Electronics, and Adani Ports saw the biggest declines, while HCL Tech, Tech Mahindra, and Power Grid saw gains.

Weakness was also evident globally. Asian markets saw sharp declines, with South Korea's Kospi, Japan's Nikkei 225, China's SSE Composite, and Hong Kong's Hang Seng Index, with the Kospi falling nearly 6 percent. US markets also closed lower in the previous trading session. Meanwhile, Brent crude prices rose 1.24 percent to $113.6 per barrel.

Investors alert

According to market data, foreign institutional investors sold shares worth ₹5,518.39 crore on Friday, while domestic institutional investors (DIIs) bought shares worth ₹5,706.23 crore. So far this month, foreign investors have withdrawn approximately ₹88,180 crore (about $9.6 billion) from the Indian market, putting pressure on the market.