The benchmark Nifty 50 has tumbled below 22,200 to hit an 18-month low of 22,181.10, Sensex tanked 1,100 points to 71,451 as Indian equities face another round of selloff during the trading session on Thursday, October 8.
In the previous session, the markets closed in the red, with Nifty ending 0.76% lower and Sensex clsoing 429 points down. The latest market crash comes amid India's corporate earnings season, with IT giant Tata Consultancy Services (TCS) to be the first major listed company to declare its second-quarter results today.
Why Is Indian Stock Market Crashing?
Crude oil prices jumped as tensions in the Middle East escalated, with reports stating that US President Donald Trump may be planning a military strike on Iran before the November mid-term polls. Brent futures were trading 3.8% higher at $104.1 a barrel.
The higher crude prices has raised concern for an oil-importing country such as India, as elevated oil prices could boost imported inflation, hence impacting the prospects of companies betting on a resilient demand to improve their earnings.
The Indian stock market is also under pressure following weak global cues, with the US stock market ending in the red on Wednesday. The Dow Jones Industrial Average lost 341.1 points, while S&P 500 and Nasdaq Composite closed 0.22% lower each. Asian markets also felt the impact, with Japan's Nikkei 225 falling 1% to 69,339.80, while the South Korean Kospi slipping 1% to 6,731.75 as of 10:12 a.m. JST and 10:07 a.m. KST, respectively. The Australian Securities Exchange S&P/ASX 200 dipped 0.51% to 8,682.90.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.