Indian stock markets opened sharply lower on Monday, with the Nifty 50 falling by around 700 points in early trading on March 9. With this drop, the index is close to entering a technical correction, which means a fall of about 10% from its recent record high on January 5.
The sudden decline wiped out nearly ₹15 lakh crore in investor wealth within the first few minutes of trading, showing heavy selling across the market.
Oil Prices Jump
One of the biggest reasons for the fall is the sharp rise in global crude oil prices. Oil prices jumped nearly 30% and crossed $115 per barrel, mainly due to tensions related to the US–Iran war.
Higher oil prices are bad for India because the country imports most of its oil. When oil becomes expensive, it increases costs for businesses and can lead to inflation.
Because of this, oil-related companies saw sharp declines. Shares of HPCL, BPCL, and Indian Oil fell by up to 6%, while airline company IndiGo dropped more than 5% as higher fuel prices increase operating costs.
Global Markets Also Under Pressure
The fall in Indian markets is also linked to weakness in global markets.
Futures linked to the Dow Jones Industrial Average dropped by around 1,100 points when trading resumed on Sunday evening. Other Asian markets also fell sharply. In South Korea, trading in the KOSPI index was temporarily halted after the market dropped more than 8%.
Stronger US Dollar Adds to Concerns
Another factor affecting the market is the stronger US dollar. The US Dollar Index is nearing 100, showing that investors are moving money into the dollar during uncertain times.
At the same time, the Indian rupee opened near a record low of 92.20 per dollar. A weaker rupee makes imports more expensive and can negatively affect several sectors.
Some Stocks Still Gain
Even though the overall market was down, a few stocks still performed well. Apollo Pipes Ltd., Jindal Poly Investment & Finance Company Ltd., Cupid Ltd., Aakash Exploration Services Ltd., and R Systems International Ltd. gained between 12% and 14% in early trading.
Market Outlook
Experts say the market may remain volatile in the coming days as investors watch oil prices, global markets, and currency movements closely.
