The Indian stock market witnessed a somber extension of losses for the third consecutive session on April 16th. As the opening bell rang, the Nifty 50 index stumbled, commencing at the 22,125 level and swiftly plummeted to an intraday low of 22,103, shedding nearly 650 points over the course of three tumultuous days. Meanwhile, the BSE Sensex opened at a starkly lower 72,892, cascading further to an intraday low of 72,814, tallying a staggering loss of approximately 2,184 points within the same timeframe. In parallel, the Bank Nifty commenced trading at 47,436, only to dip to today’s low of 47,316.

Market Turmoil: Assessing the Three-Day Losses

Over the past trio of trading sessions, the downturn has been palpable across major indices. The Nifty 50 index experienced a harrowing descent, shedding nearly 650 points. Simultaneously, the BSE Sensex grappled with a loss exceeding 2,200 points, while the Bank Nifty index bore the brunt, tumbling by a formidable 2,700 points. In contrast, amidst the market turmoil, the small-cap index managed to eke out a modest gain of nearly one percent, while the mid-cap index saw a more moderate uptick of around 0.40 percent.

Analyzing the Catalyst: The Iran-Israel Conflict

One of the discernible catalysts for the stock market’s downturn lies in the escalating tensions gripping the Middle East, notably fueled by the Israel-Iran conflict. The resultant geopolitical uncertainty in the region has reverberated across global markets, exacerbating the prevailing market jitters.

Global Market Reflections: A Broad Downturn

The pervasive downtrend transcended national borders, casting a shadow over global bourses. Notably, the US stock market concluded on a lower note on both Friday and Monday. Furthermore, Asian markets, including the Nikkei, Hang Seng, and Kospi, grappled with significant downward pressure, reflecting the prevailing sense of unease.

Crude Awakening: Impact of Oil Price Surge

The recent surge in crude oil prices has emerged as a notable factor exacerbating market volatility. With prices soaring to a six-month high in both domestic and international markets, registering a formidable increase of almost 6 percent in March 2024 and an additional 3 percent in April thus far, the repercussions have rippled across financial markets, adding further strain to an already tumultuous landscape.