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Markets Plunge: Investors Lose Lakhs in Minutes
2 Apr
Summary
- Indian stock markets lost Rs 10 lakh crore in under an hour.
- US President's Iran threat and rising oil prices rattled markets.
- RBI's new rules for rupee market hit bank stocks significantly.
Indian equity markets witnessed a drastic decline on Thursday, with investors facing a substantial loss of wealth amounting to Rs 10 lakh crore in less than an hour. The BSE Sensex and Nifty 50 indices opened significantly lower, mirroring global anxieties.
US President Donald Trump's strong warning to Iran and the subsequent rise in oil prices, with Brent crude climbing nearly 5% to around $105 per barrel, were primary triggers for the sell-off. This geopolitical tension, coupled with sustained selling by foreign portfolio investors who offloaded shares worth Rs 8,331 crore on April 1, weighed heavily on market sentiment.
Adding to the pressure, the Reserve Bank of India's recent tightening of rules to curb speculative activity in the rupee market impacted bank stocks negatively. The Nifty Bank index saw a considerable drop of 2.6%, underperforming the broader market. Technical analysts noted chart weaknesses, with the Nifty failing to hold key levels and facing immediate support near 21,900.
