New Delhi, 02 April (H.S.):
The Indian stock market plunged into mayhem today, just a day after witnessing a strong rally. After a robust close on Wednesday, the domestic equity benchmarks slumped into a sharp, broad‑based selloff. During early trade, the market fell by over 2.15 per cent, with the Sensex tumbling nearly 1,600 points and the Nifty plunging roughly 500 points in the first hour.
Massive loss in first hour
The violent sell‑off wiped out investor wealth worth more than ₹9 lakh crore within the first hour of trading. After the opening hour, the market capitalisation of BSE‑listed companies fell to ₹412.84 lakh crore, down from ₹422.01 lakh crore at the end of the previous trading session on Wednesday—implying a loss of about ₹9.17 lakh crore for investors in less than 60 minutes.
All 30 stocks in the Sensex and all 50 in the Nifty ended the first hour in the red. The steepest declines were seen in shares of companies such as Airtel (4.44 per cent), Sun Pharmaceutical (4.05 per cent), and InterGlobe Aviation (4.02 per cent). Even TCS, which saw intermittent buying interest, traded weak overall.
Geopolitical fears hit global markets
Analysts say ongoing tensions in West Asia have already created a nervous mood across global equity markets. The world’s economies are being affected by the war between the United States, Israel, and Iran, with markets highly sensitive to any shift in the U.S. stance.
Prashant Dhamee, Vice President at Dhamee Securities, noted that just two days ago, President Donald Trump’s suggestion that the U.S. could exit the conflict in Iran within a few weeks had briefly boosted global markets. However, on 1 April, his aggressive tone towards Iran turned the mood upside‑down, leaving investors across the world bewildered.
In his address, Trump said that if the Strait of Hormuz re‑opened fully, a ceasefire could be considered; otherwise, the U.S. would continue its military actions against Iran.
Oil surge and crash‑like selling
Trump’s remarks triggered fresh panic in world markets. Crude oil prices surged, while equity markets worldwide came under intense pressure, with broad‑based selling across sectors. Fears of rising energy costs and wider supply‑chain disruptions spilled over into Indian markets, leading to a near‑crash‑like fall.
Prashant Dhamee advised small investors to stay away from the market in the current environment of extreme volatility, warning that retail participants could face heavy losses if they jump in during such wild swings.
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Hindusthan Samachar / Jun Sarkar
