Global Financial Markets: Sensex Plunges 1,836 Points, Investors Lose 13.65 Lakh Crore

At market close, the 30-share BSE Sensex dropped 2.46 percent or 1,836.57 points to settle at 72,696.39, while the NSE Nifty fell 2.60 percent or 601.85 points to 22,512.65.This decline in the Sensex led to a reduction of approximately ?14 lakh crore in the total market capitalization of BSE-listed companies, bringing it down from Friday's ?428.76 lakh crore to ?415.11 lakh crore.

Market expert Sunil Shah noted that the first day of the new week was particularly harsh for investors, with the Sensex falling over 1,800 points. He stated that until the tense situation is resolved and conditions normalize, it will be difficult for a positive sentiment to emerge in the market. For now, the situation remains negative and concerning for investors.

Explaining the reasons for the drop, he pointed to weekend developments and a statement from the US President warning that if the Strait of Hormuz is not opened within 48 hours, Iran would face serious consequences. In response, Iran adopted a tough stance, stating that if such action occurs, it would attempt to damage the infrastructure of Gulf countries. He said such statements and escalating tensions are not good signs for the market, and if the situation worsens, the impact could deepen further.

He added that India follows global market trends, so declines were seen in almost all major markets today. Additionally, rising crude oil prices could negatively affect India's macroeconomy and corporate earnings.

Amid rising conflicts in the Middle East, precious metals (gold and silver) also saw significant declines on Monday. The surge in crude oil prices due to escalating US-Iran tensions impacted both stock and commodity markets.

As per the All India Sarafa Association, 99.9 percent pure gold dropped ?9,050 or about 6 percent from Friday's closing level of ?1,52,650 per 10 grams (including all taxes) to ?1,43,600 per 10 grams. Silver also fell sharply by ?10,500 or 4.36 percent to ?2,30,000 per kilogram (including all taxes), compared to ?2,40,500 per kilogram in the previous session.

On the Multi Commodity Exchange (MCX), gold and silver prices also declined. As of around 5:28 PM, April delivery gold was trading 3.55 percent lower at ?1,39,359 per 10 grams (down ?5,133), while May delivery silver fell 2.81 percent to ?2,20,389 per kilogram (down ?6,383).

April delivery gold opened at ?1,40,158 per 10 grams, hit a high of ?1,40,659, and a low of ?1,29,595. May delivery silver opened at ?2,17,702 per kilogram, reached a high of ?2,23,967, and a low of ?1,99,643.Experts note that amid global market volatility due to rising West Asian tensions, gold and silver prices have been declining recently. They say fears of renewed inflation from the US-Iran conflict have dashed hopes of near-term interest rate cuts by the US Federal Reserve. On the other hand, inflation concerns are pressuring the market, while the hawkish stance of the US Federal Reserve and other central banks continues to weigh on gold and silver.