Indian Stock Market Bloodbath: Investors’ Lost ₹15 lakh Crore Amid Sell-off

Indian equities kicked off Monday’s session on a sharply negative note, with the Nifty 50 index plunging nearly 700 points in early trade on March 9. The benchmark index is now dangerously close to entering a "technical correction" phase, a decline of 10% from its record highs touched on January 5 this year.

The steep drop has already erased around ₹15 lakh crore in investor wealth within the first few minutes of trading. Here are the key factors behind the market rout:

Surge in Crude Oil Prices

The most significant trigger has been the sharp spike in crude oil prices. As a net importer of oil, rising prices weigh heavily on India’s markets. Oil surged almost 30% on Monday, breaching the $115-per-barrel mark, driven by ongoing tensions in the US-Iran conflict.

Energy and oil-related stocks have borne the brunt, with HPCL, BPCL, and Indian Oil losing up to 6% in early trade. Airlines like IndiGo have also been hit, down over 5%, reflecting the rising fuel costs.

Global Market Sell-Off

The oil shock has sent ripples across global markets. Dow Jones futures fell sharply by as much as 1,100 points as trading resumed on Sunday evening in the US.

Asian markets have not been spared either. South Korea’s KOSPI index faced a trading halt after tumbling more than 8%, underscoring the breadth of the global sell-off.

Strengthening US Dollar

A stronger US Dollar has further pressured Indian markets, particularly metal and export-oriented stocks. The US Dollar Index is approaching the 100-mark, while the Indian rupee opened near record lows of 92.20, amplifying concerns about foreign capital outflows.

Rising Inflation & Economic Concerns

Beyond oil and currency pressures, investors are also wary of persistent inflation and its potential impact on interest rates. Rising input costs, coupled with global uncertainties, have intensified selling sentiment in the markets.

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