BUSINESS

Stock Market Crash: Sensex Drops 800 Points, Losing Investors Over 5 Lakh Crores: These Are The Top 5 Causes of Market Collapse

The Indian major stock indexes, the Sensex and Nifty, began the week down on Monday, mirroring losses in Asian markets. Following Iran’s retaliatory strike on Israel over the weekend, investor mood remained muted, raising fears of a wider regional confrontation.

The Nifty fell by 181.75 points, or 0.81 percent, to 22,337.65, while the Sensex fell by 887.82 points, or 1.20 percent, to 73,357.08.

Of the Nifty firms, five saw growth, while forty-five had decreases.
Among the biggest losses were BPCL, Coal India, Tata Consumer Products, Tata Motors, and Adani Enterprises, while notable winners were Hindalco, ONGC, TCS, Nestle India, and HCL Technologies.

According to an ET report, the market capitalization of all listed businesses on the BSE fell by Rs 6 lakh crore to Rs 393.77 lakh crore in parallel with the decline in stock prices.

Causes of The Market Collapse
Israel Iran War
Iran launched a drone strike on Saturday night in retaliation for what it believed to be an Israeli assault on its embassy in Damascus. Seven members of the Iranian Revolutionary Guard Corps, including two generals, were killed as a consequence of this escalation.

Due to investor fears about possible repercussions from Iran’s historic military move against Israel, the financial markets, especially the Sensex and Nifty, saw notable falls on Monday. Given that the market is already at an all-time high, analysts predict that international tensions will make it more vulnerable to a knee-jerk response.

Markets in Asia

Following Iran’s missile strike on Israel, MSCI’s Asia-Pacific equities index (excluding Japan) fell by 0.7% as Asian markets began the week warily. The Nikkei of Japan suffered a drop of more than 1%, while the S&P/ASX 200 index of Australia and the Hang Seng index of Hong Kong also saw declines of 0.6% and 0.8%, respectively.
Treasury Yields Retain Their Latest Highs

As traders modified their expectations for the Federal Reserve’s rate-cutting plans for the year, US Treasury rates stayed close to their recent highs. The benchmark yield for the 10-year note was 4.5277 percent, while the yield on the 2-year note was around 4.8966 percent.

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