Stock Market Crash: Bears Take Over D-Street As Sensex, Nifty Log Worst Weekly Fall in 4 Yrs Amid Iran-US War

Stock Market Crash: Bears completely took charge of Dalal Street as benchmark indices, Nifty 50 and BSE Sensex, logged their steepest weekly decline in four years. Markets witnessed sharp volatility throughout the week as the escalating tensions in the Iran-United States conflict rattled global investor sentiment. Among sectoral indices, the Nifty Auto plunged more than 6% over the past five trading sessions, marking its worst weekly performance since the outbreak of COVID-19.

Nifty 50 ended Friday's trading session 488 points lower at 23,151 points, whereas BSE Sensex concluded the session 1470 points lower at 74,563.92 points.

Nifty 50, Sensex Down Close To 5% In Week

As per NSE website, Nifty 50 was down around 6.5% in one week from 24,765.90 points on March 5 to 23,151.10 on March 13. Whereas BSE Sensex was down around 3.6% since last Friday. With this, Nifty and Sensex have recorded their biggest ever weekly decline in last four years. Additionally, both the benchmark indices are down around 10% from their all-time highs.

Stock Market Crash: Auto, Bank, Realty Among Top Casualties

Nifty Auto, Nifty Bank, realty stocks were among the top casualties in the stock market crash that occured during the period. Nifty Auto was down more than 6% in the last five trading sessions which made it one of the worst weekly performances of the indices since COVID pandemic.

Top Losers, Top Gainers

Larsen & Toubro, Hindalco, Tata Steel, JSW Steel, GRASIM, SBIN, etc were among the top laggards on Nifty 50 during Friday's trading session. Whereas, Tata Consumer, Hindustan Unilever, Bharti Airtel were among the top gainerr on Nifty 50. Apart from the Nifty 50 stocks, power, green energy stocks stole the show with stocks like Adani Green Energy, NTPC Green Energy, Adani Total Gas, etc surging more than 25% in the week.

Stock Market Crash Amid US-Iran War

The sharp decline in Nifty and Sensex in the last five trading sessions came as the Iran-US war continued to intensify the Middle East crisis. The crisis in the region has impacted crude oil and natural gas supply across the globe, including India. The escalation of gas and fuel supply crisis in the country and depreciating Indian Rupee has further raised concerns among investors.

Geopolitical tensions in the Middle East are raising crude oil risks for India. The country depends on imports for about 85% of its crude needs. Around 40-50% of this imported crude moves through the narrow Strait of Hormuz. This leaves India's supply routes exposed if conflict in the region escalates further.

A prolonged standoff could raise inflation and increase pressure on the rupee. Margins for aviation, paints, chemicals and oil marketing companies may weaken. Such stress can trigger FPI outflows.

Rupee Sinks To Record Low Mark

The rupee sank to a fresh record low on Friday, March 13. The recent decline in the domestic currency came amid escalating Middle East tensions and rising crude oil prices. The Indian Rupee declined to 92.39 per dollar and breached its previous record low mark. The rupee has declined by over 1% since the beginning of the Iran-US war.

Crude Oil Price Rally

The crude oil prices continued to remain elevated on Friday after seeing some correction in the last trading session. The crude oil price continued to remain above the psychological mark of $100 a barrel mark.