Stock Market crashes following Donald Trump's tough statement regarding Iran; Sensex, Nifty plunge; investors' Rs 10 lakh crore wiped out
Stock Market Crash: A massive decline was witnessed in the Indian stock market immediately upon opening on Thursday morning. The BSE Sensex plunged 1,464 points (2.00%) to open at 71,669, while the Nifty 50 dropped 466 points (2.06%) to reach the level of 22,213.
Donald Trump's tough statement regarding Iran is being cited as the primary reason for this decline. Trump has warned that the US military could launch a major military operation against Iran within the next 2–3 weeks.
Market had witnessed a strong rally just a day earlier
Although he also noted that the mission could be completed quickly, fears of escalating tensions in the Middle East and the possibility of a prolonged conflict triggered panic among investors, leading to widespread selling across the market.
Interestingly, just a day prior—on Wednesday—the market trend was exactly the opposite. Driven by hopes of de-escalating tensions in the Middle East, the market had witnessed a robust rally. The BSE Sensex surged 1,186.77 points (1.65%) to close at 73,134.32, while the Nifty 50 climbed 348 points (1.56%) to reach 22,679.40.
Trump's Statement Spoils the Game
Following Wednesday's rally, investors were optimistic that the market would scale new heights; however, a recent statement by Donald Trump completely altered market sentiment, leading to a trading session that opened on a downward note on Thursday.
Rs 10 Lakh Crore Wiped Out
This sharp decline in the stock market inflicted heavy losses upon investors. During the morning trading session alone, approximately ₹10 trillion in market value was wiped out. The total market capitalization of companies listed on the BSE shrank to approximately Rs 412 trillion.
The impact was clearly visible across global markets as well. The Nikkei 225 was seen trading at 53,004, down nearly 1.4%. Meanwhile, the KOSPI tumbled 3.4% to settle at 5,292. The Hang Seng Index also registered a decline of 0.8%, hovering at the 25,082 level.
The pressure was not limited to Asian markets alone. US markets also witnessed significant strain. US market futures were seen trading down by more than 0.9%, signaling that an atmosphere of uncertainty and fear persists among investors globally.