Nifty Below 23,850, Sensex Down 500 Points: Three Reasons Why Market Is Falling

Stock Market Crash: Domestic equity benchmarks Sensex and Nifty 50 fell on Wednesday, July 22 in a broad-based sell-off as renewed geopolitical tensions pushed crude oil prices higher. The benchmark Nifty 50 fell 0.59% to 23,853, while the Sensex lost 0.57% to 76,783 as of 1:40 pm

Nifty 50 fell as much as 0.77% to 23,811.20, while the Sensex declined as much as 0.74%, to 76,190.

Barring Auto, Media, and Consumption, all sectors are in red, with Nifty Realty falling the most, down 1.53%, followed by PSU Bank, and Bank.

The broader market is facing pressure too, with the Nifty Smallcap 250 falling almost 0.85%, and the Nifty Midcap 150 dropping about 0.91%.

Here's three reasons why markets are crashing on Thursday:

Geopolitical Tensions Rising

Geopolitical tensions in the Middle East escalated further after the Iran-backed Houthis claimed responsibility for attacks on two commercial oil tankers in the Red Sea, opening a new front in the ongoing US-Iran conflict.

Saudi Arabia confirmed that one refined-products tanker, Encelia, was attacked, while the British navy reported that a tanker was struck near the Saudi town of Al Shuqaiq. The Houthis said the second vessel, Layla, was a crude oil tanker.

The attacks came as the US carried out a 12th straight day of airstrikes on Iranian military targets, while Iran responded by targeting US bases in Kuwait and Jordan. US President Donald Trump also warned that American forces would retaliate by destroying Iranian infrastructure each time Tehran targets vessels in the Strait of Hormuz.

Crude Prices On The Rise

Brent crude surged 3.8% on Thursday to nearly $98 a barrel, extending its gains since July 10 to around 30%, as traders priced in rising geopolitical risks and the possibility of prolonged supply disruptions.

The latest escalation has heightened concerns over global energy supplies, with the Red Sea's Bab el-Mandeb Strait emerging as another potential maritime chokepoint after Iran's closure of the Strait of Hormuz. Some shipping companies are already avoiding the route, raising fears of further disruptions to oil flows.

Global Tech Earnings

US equity futures edged lower on Thursday as investors assessed corporate earnings, concerns over elevated artificial intelligence spending and a surge in crude oil prices. Dow Jones futures slipped 43 points (0.1%), while S&P 500 futures and Nasdaq 100 futures fell 0.2% each.

Alphabet shares declined 3% in after-hours trading after the Google parent raised its 2026 capital expenditure guidance to as much as $205 billion, reinforcing its aggressive AI investment plans but renewing concerns over hyperscalers' spending. In the previous session, the Dow Jones Industrial Average ended little changed, slipping 6.06 points (0.01%), while the S&P 500 fell 0.14% and the Nasdaq Composite declined 0.57%.

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