Stock Market Crash Today: Rs 10 Lakh Crore Wiped Out Within Minutes as Sensex, Nifty Plunge on Global Tensions

Both BSE Sensex and Nifty 50 opened sharply lower after US President Donald Trump’s latest Iran threat triggered a surge in oil prices, intensifying global market concerns. The Sensex fell over 1,400 points in early trade, while the Nifty slipped nearly 2 per cent, falling below 22,300. All 16 major sectoral indices traded in the red, reflecting widespread selling pressure across the market.

Heavy selling was observed across sectors, with financials and banks dropping around 1.6 per cent. Mid-cap stocks fell 1.2 per cent, while small-cap stocks declined 1.5 per cent. Industrial and infrastructure stocks saw sharp cuts, while pharma and aviation stocks faced heavy pressure. Among key losers, State Bank of India declined over 3 per cent. HDFC Bank, ICICI Bank, and Axis Bank fell between 1.5 per cent and 2.5 per cent. Larsen & Toubro dropped more than 3 per cent, while Adani Ports and Special Economic Zone and Adani Enterprises also fell over 3 per cent. InterGlobe Aviation dropped more than 4 per cent, and Sun Pharmaceutical Industries declined nearly 5 per cent.

IT stocks showed some resistance amid the broader sell-off. HCL Technologies recorded marginal gains, while Infosys and Tata Consultancy Services fell less than the overall market decline.

The sharp fall in markets was driven by multiple factors. US President Donald Trump stated that the United States would hit Iran "extremely hard" within the next two to three weeks, without providing clarity on the duration of the conflict. This statement pushed Brent crude prices up nearly 5 per cent to around 5 per barrel, while industrial metals such as copper declined.

Foreign portfolio investors continued their selling streak, offloading shares worth Rs 8,331 crore on April 1. Domestic institutional investors purchased Rs 7,172 crore worth of equities, but this was insufficient to offset the sustained foreign selling. Analysts noted that continued FPI outflows, rising crude prices, and pressure on the rupee were weighing heavily on the markets.

Technical indicators also reflected weakness. The Nifty failed to hold above 22,770 after Wednesday’s gap-up opening. Immediate support is seen near 21,900, while some buying interest may emerge around 22,330. The market needs to trade above 22,630 to regain strength.

Volatility surged as India VIX rose 5 per cent on Thursday after declining 10 per cent a day earlier, indicating expectations of further short-term swings and sustained selling pressure.

Banking stocks remained under pressure following a regulatory move by the Reserve Bank of India to tighten rules aimed at curbing speculative activity in the rupee market. The new requirement mandates banks to close certain contracts in the open market. Analysts warned that this could lead to higher losses for lenders. The Nifty Bank index fell 2.6 per cent, underperforming the broader market.

The sharp decline underscores the vulnerability of domestic markets to global geopolitical tensions, persistent foreign outflows, regulatory changes, and rising volatility, leaving investors cautious amid uncertain near-term outlook.