D-Street Mayhem: Rs 15 Lakh Cr Wiped Out As Nifty-Sensex Close 2.5% Lower, Rupee In Free-Fall Amid Iran-US War

Stock Market Closing: The Indian stock market declined nearly 2.5%, starting the week on a bearish note. Sensex closed around 2.3% lower, whereas Nifty 50 fell around 2.5% during on March 23. The sharp decline in Nifty and Sensex today came as the Iran-US war in West Asia fuelled global energy concerns.

By the time of Indian stock market closing today, around Rs 15 lakh crore of investors wealth was wiped out from Dalal-Street on Monday. Nifty 50 fell around 2.6% to close at 22,512 points on Monday. Whereas BSE Sensex closed 1836 points lower at 72,696 points. India Vix surged significantly during Monday's trading session and closed 17.8% higher on Monday.

BSE listed market cap hit as low as Rs 414 lakh crore, down by Rs 15 lakh crore from Friday's close during Monday's intraday trade session. BSE market capitalisation declined around Rs 13.8 lakh crore to Rs 4.14 trillion at Monday's close from Rs 4.29 trillion reported on Friday.

The Indian stock market crash on Monday, March 23, came as the US-Iran war escalated, with the United States President Donald Trump issuing a 48-hour deadline to Iran over the weekend and warning of direct strikes on its power infrastructure if the Strait of Hormuz is not opened.

Top Losers, Top Gainers

Titan, Shriram Finance, Trent, JioFinance, HDFC Life, Ultra Cement Company, Adani Enterprises, Jio Finance, HDFC Life, were among the top Nifty 50 losers. Whereas, HCL Tech, PowerGrid, TechMahindra were the only Nifty 50 stocks that ended the session in green.

Nifty-Sensex Closing: Why is the Market Falling Today?

Escalated Iran-US Tensions

US President Donald Trump has issued a two-day deadline to Iran and has also warned of direct strikes on its power infrastructure. The geopolitical tensions have also raised global oil supply concerns. While Trump issued the warning hoping that Iran would give up and agree to open Strait of Hormuz, Tehran said that it would target US and Israeli assets across the region, including energy, information technology and desalination infrastructure, etc.

Crude Oil Price Rally

Brent crude futures climedto their highest close since mid-2022 on Monday, March 23. As per Trading Economics data, brent crude futures climbed above $113 per barrel. The commodity tracked one of its highest mark in a decade. Experts have warned that if Iran-US war doesn't end in the coming days, brent crude price can touch $130 per barrel mark.

Indian Rupee Hit At Record Low

The Indian rupee fell to its record low mark on Monday, March 23. The sharp fall in Indian Rupee on Monday came as high crude oil prices raised concerns. Prolong energy-suppl disruptions and strain the outlook for Asia's third-largest economy, as per Reuters report. The Indian rupee ended at a record closing low of 93.98 against the US dollar, weakening from Friday's close of 93.71 per USD.

Nifty 50 Falls Nearly 14% From Its All-Time Low: What Should Investors Do?

Indian investors can take cue for the Indian stock market when Nifty 50 will start hovering close to its key support zone.

"The key support zone lies in the 22,000-21,700 range, which marks the lows of last year. Since the COVID-led decline in CY20, Nifty has consistently held above its previous yearly lows, making this a critical area to monitor in the near term. Going forward, geopolitical developments and movements in Brent crude prices are likely to play a decisive role in shaping the direction of the equity markets," said Bajaj Broking Research.

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