Today again a decline was seen in the Indian stock market. On Monday, the first trading day of the week, the market's main index Sensex fell by around 1200 as soon as it opened. At the same time, severe selling was seen in Nifty 50 also. Within a few minutes, investors lost more than Rs 7 lakh crore. However, after some time the market made a slight comeback. Till the time of writing the news, at 9.37 am, the market's main index Sensex fell by almost 500 points to 73,127.69.

Investors suffered a loss of around Rs 5 lakh crore in a matter of minutes, as the total market capitalization of BSE listed companies dropped from Rs 422 lakh crore in the previous session to Rs 415 lakh crore.

Why is the Indian stock market falling?

1. US-Iran war- The US-Iran war, which began on February 28, has been going on for more than a month now. There are varying indications as to whether this will end soon. US President Donald Trump last week extended the ban on attacks on Iran's energy infrastructure. However, little progress has been made toward completely resolving this dispute. According to media reports, the Trump administration has sent a 15-point ceasefire plan to Iran. However, no formal talks have taken place so far, even though both sides have been talking through back channels and mediators, including Pakistan's mediation efforts.
2. Continuous selling of FPI- Amidst the ongoing fierce war in West Asia, foreign portfolio investors (FPIs) are continuously selling Indian stocks. According to NSDL data, FPIs have withdrawn Rs 1,23,025 crore from the Indian financial market till 27th of March. Equity assets of FPIs declined by $79 billion to $710 billion in the fortnight ended March 15. This is the biggest fortnightly decline in at least six years, worse than the selloff caused by the COVID-19 pandemic.
3. Monthly F&O Expiry- The March series of futures and options (F&O) contracts expires on Monday, March 30, as there is a stock market holiday on Tuesday, March 31 due to Shri Mahavir Jayanti. Its effect has also been seen on the market. Experts believe that the market may remain volatile due to expiry.
4. Global market in red mark- There was a huge decline in global markets, and Dalal Street was also not untouched by this. Japan's Nikkei fell more than 3%, while South Korea's Kospi fell nearly 3%. Taiwan Weighted fell 1.5%, while the Hang Seng was down about 1%. Wall Street closed the last session sharply lower, with the S&P 500 down nearly 1.7% and the tech-heavy Nasdaq falling more than 2%. European markets also closed in the red. Germany's DAX fell more than 1%, France's CAC fell 0.9% and the UK's FTSE was almost flat.
5. Rise in crude oil prices- Brent crude prices rose further and are trading above the $115 per barrel mark as uncertainties remain over the US-Iran war. The Strait of Hormuz, through which about 20% of the world's crude oil and LNG passes, is still effectively closed to most shipping. Concerns are growing that higher crude oil prices will harm India's macroeconomic sentiment, as the country is the world's third largest crude oil importer. It fulfills about 85-90% of its oil needs through imports.

Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.