Rs 5 lakh crore wiped out! Sensex tumbles over 1,400 pts, Nifty below 22,700; escalating Iran-US-Israel war among 6 factors behind today’s D-St crash

Market Overview - Indian stock markets experienced a significant decline, with Sensex dropping nearly 1,436 points to 73,097 and Nifty 50 falling over 430 points to 22,681, resulting in a loss of nearly Rs 5 lakh crore in total market capitalization, bringing it down to Rs 424 lakh crore [1][22] - All 30 constituents of Sensex were in the red, with major losses from Tata Steel, State Bank of India (SBI), HDFC Bank, Bajaj Finance, Titan, and Mahindra & Mahindra (M&M), which fell 2-3% [1][22] - On the NSE, all sectoral indices were negative, with Nifty Metal and Nifty PSU Bank indices being the top losers, each declining more than 3% [2][22] Key Factors Influencing Market Decline - The ongoing war between Iran and the US-Israel escalated, with threats exchanged between leaders, raising concerns about further conflict in the Middle East [6][22] - Oil prices surged to $113 per barrel due to the conflict, with the effective closure of the Strait of Hormuz, a critical passage for over 20% of the world's oil supply [8][22] - The Indian rupee fell to a record low of 93.84 against the US dollar, exacerbated by rising oil prices and persistent foreign institutional investor (FII) selling [10][22] - Foreign investors have been selling Indian equities for 16 consecutive sessions, with net sales of Rs 5,518 crore reported on Friday [12][22] - Rising US bond yields, with the 10-year Treasury yield crossing 4.4%, have made government securities more attractive compared to equities, putting additional pressure on stock markets [13][22] Technical Analysis - Nifty 50 has found support at the 22,950-23,000 range, but has fallen below these levels, indicating potential bearishness [18][23] - The index formed a Doji candle on the weekly chart, signaling strong selling pressure and a bearish bias in both the short and medium term [19][23] - A move below last week's low could lead to further declines, with potential support areas identified at 22,700–22,400 [20][23]