Why Is Market Falling Today? Know Key Factors Behind Sensex, Nifty Crash On June 8

Why Is Market Falling Today, June 8? The Indian equity markets opened sharply lower on Monday, tracking weak global cues amid escalating tensions in West Asia, a surge in crude oil prices and a broad selloff across Asian markets.

The Nifty 50 fell 290 points, or 1.24%, to 23,076.65 in early trade, while the BSE Sensex dropped 840 points, or 1.13%, to 73,403.06. Selling pressure was widespread, with midcap and smallcap stocks also witnessing sharp declines.

The weakness was visible across market segments. Realty, metal, auto and financial stocks were among the biggest losers, while pharma and healthcare stocks showed relative resilience.

Key Factors Behind Market Decline on June 8

Renewed Tensions in West Asia

West Asia tensions escalated on Monday after Israel launched airstrikes

targeting central and western Iran in response to missile fire. Iranian state television reported the sound of explosions being heard in Isfahan, Tabriz and Tehran, without immediately elaborating.

American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalized and the latest attacks further strain efforts to end the conflict.

Crude Oil Prices Jump

Brent crude, the international standard, jumped $3.50 to $96.59 a barrel. Benchmark U.S. crude surged $3.48 to $94.02 a barrel.

Global Cues

Asian shares skidded Monday after worries about Big Tech investments and rising odds for an interest rate hike gave U.S. stocks their worst day since October. Japan’s benchmark Nikkei 225 dropped 4.2% to 63,804.77. The Japanese government revised the annualized economic growth rate to 1.8% for the first quarter this year, down from an earlier estimate of 2.1%.

In other share trading, South Korea’s Kospi slipped 6.8% to 7,605.42 as Samsung Electronics, the country’s biggest company, dropped 7%. SK Hynix declined 3.3%.

Taiwan’s Taiex lost 3.8%. Hong Kong’s Hang Seng lost 1.3% to 24,631.64. The Shanghai Composite shed 1.1% to 3,984.75.

Wall Street finished last week with the S&P 500 sinking 2.6%, to 7,383.74, after a strong jobs report boosted expectations that the Federal Reserve will raise rates at some point this year. It was the biggest one-day drop since Oct. 10, when the Trump administration threatened to impose a 100% tariff on imported goods from China. The Dow Jones Industrial Average fell 1.4% to 50,866.78. The Nasdaq composite slumped 4.2% to 25,709.43.

India VIX Jumps 10%

India VIX, the market’s fear gauge, jumped over 10% to 17.40, indicating heightened volatility.

Technical Outlook

According to Aakash Shah, Technical Analyst at Choice Broking, Nifty continues to trade below all key moving averages and remains in a lower high-lower low formation, reflecting a weak technical structure.

The immediate support zone is seen around 23,100-23,000. A decisive breach below these levels could accelerate selling towards 22,700. On the upside, 23,500 remains the first hurdle, followed by a stronger resistance zone near 23,700.

Shah also pointed out that the Nifty Put-Call Ratio has declined to 0.83 from 1.00 in the previous session, indicating reduced bullish positioning and increasing caution among derivatives traders.