On Tuesday, the Indian stock market’s benchmark indices—Sensex and Nifty—opened nearly 1% lower. After three days of gains, the market sentiment weakened, pressured by rising crude oil prices and continued selling by foreign investors. In early trade, the Sensex fell 1.05% to 73,326.61, while the Nifty fell 0.9% to 22,771.75. Along with large-cap stocks, midcap and smallcap indices also fell about 1% each, reflecting broader pressure across the market. During this period, the total market capitalization of companies listed on BSE declined by ₹4.24 lakh crore in just a few seconds. Investors suffered a total loss of around ₹4 lakh crore. The stocks that suffered the most during the initial market decline included IndiGo, Zomato parent company Eternal, Mahindra & Mahindra (M&M), State Bank of India (SBI), Axis Bank and Asian Paints; All of them saw a decline of about 2–3%. Bucking the trend, shares of Bajaj Finance, Tech Mahindra, HCL Tech and ITC were trading with gains, albeit with marginal gains.
Among the sectoral indices on NSE, the Nifty Auto index was the biggest loser. It fell more than 2% in early trading hours, while the Nifty PSU Bank index declined 1.9%. Meanwhile, the Nifty Metal index gained 0.7%, while the India VIX jumped 2%. On the NSE, around 1,105 shares declined while 1,398 shares advanced and 82 shares remained unchanged. Let us know why there was a decline in the stock market today.
due to decline
**Trump’s new threats against Iran:** US President Donald Trump has further intensified his threats against Iran. He said that if Iran does not heed his warnings, the country could suffer huge losses in a single night. Trump also said that Iran’s power plants and bridges could be destroyed within a few hours. Iran has rejected these claims. Meanwhile, attacks between Israel and Iran continue, and the situation shows no signs of normalizing. However, the market was bullish yesterday on reports that a possible deal could be reached between Iran and the US—a development that could reopen the Strait of Hormuz and allow trade to resume.
**Oil prices again cross $110/barrel:** Oil prices have once again crossed the $110 per barrel mark. The reason for this increase is the tension related to Iran and the fear of blockages in the Strait of Hormuz, which could have a negative impact on oil supplies. As of Tuesday morning data, Brent crude was trading at around $111 per barrel, while WTI crude was around $115 per barrel. Oil prices have been rising steadily since the conflict began; It had crossed the $100 mark in March itself.
**Increase in bond yields:** The yield on US government bonds (debt instruments) has increased slightly. A rise in bond yields is usually a sign that investors are pulling their capital out of the stock market and into other, safer investment avenues. This trend puts downward pressure on the stock market.
**Continuous selling by FIIs:** Foreign institutional investors (FIIs) are continuously selling their stake in the Indian stock market. According to NSE data, they have been selling shares for 24 consecutive days. On Monday alone, he sold shares worth about ₹8,167 crore. This persistent selling pressure has kept the market environment subdued, even as domestic investors are engaged in buying. Profit Booking – One reason for today’s fall is that investors have started encashing the profits accumulated in the last three days. In the last three days, both Sensex and Nifty had risen by about 3%. As a result, some investors took advantage of this opportune moment to sell their shares, leading to a market decline.
