Stock Market Crash: Domestic equity benchmarks Sensex and Nifty 50 fell on Monday, July 14 in a broad-based sell-off as renewed fighting in the Middle East pushed crude oil prices higher. The benchmark Nifty 50 fell 0.71% to 24,038.1, while the Sensex lost 0.79% to 77,001 intraday.
Nifty 50 fell as much as 0.5% to 24,089.20, while the Sensex declined as much as 712 points, or 0.58%, to 77,166, as of 10:30 am.
Most sectors in red, with Nifty Realty falling the most, down over 1.8%, followed by Defence, PSU Bank, and Auto. Nifty Metal rose by 1.07%.
The broader market is facing pressure too, with the Nifty Smallcap 250 falling almost 1%, and the Nifty Midcap 150 dropping about 0.63%.
Here's three reasons why markets are crashing on Wednesday:
Geopolitical Tensions
US President Donald Trump says the United States is 'reinstating' a blockade on Iran in the Strait of Hormuz and will charge ships for safe passage. He made the announcement in a post on social media Monday, after another exchange of fire between the United States and Iran over the critical waterway. A fifth of the world's oil and gas passed through the strait before Iran asserted control over it after the start of the war.
Iranian strikes on two UAE-flagged tankers, Mombasa and Bahia, in the southern passage of the Strait of Hormuz in Omani territorial waters killed one Indian crew member and injured eight others, according to the UAE Ministry of Defense.
The US military's official death toll from the Iran war has risen to 14 after a Navy pilot died in a helicopter crash in the Arabian Sea in early July. The number of US troops injured in the conflict has also climbed to more than 400 as of Monday.
Crude Prices On The Rise
Oil prices climbed more than 2% on Tuesday, pushing Brent crude above $85 a barrel for the first time in a month, after U.S. President Donald Trump announced plans to impose shipping fees on vessels using the Strait of Hormuz and reinstate a naval blockade of Iranian ports.
Brent crude futures for September delivery rose as much as 2.8% before trading 2.14% higher at $85.11 a barrel. U.S. West Texas Intermediate crude for August delivery gained 2.27% to $79.91 a barrel, extending Monday's rally of nearly 10%.
Rupee Weakens
The Indian rupee weakened past the 96-per-U.S.-dollar mark for the first time since May 22, as higher crude oil prices and renewed geopolitical tensions weighed on the currency.
The rupee has weakened in six of the 10 trading sessions so far this month. On Tuesday, it depreciated by as much as 30 paise to 95.62 against the U.S. dollar.
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