Sensex Tanks 1700 Points, Investors Lose Rs 8 Lakh Crore; Know Key Reasons Behind Market Crash Today

Why Is Stock Market Falling Today? After rallying nearly 6 percent last week, Indian benchmark indices—the Sensex and Nifty 50—opened the week on a weak note, plunging over 2 percent in early trade on Monday, April 13.

The Sensex dropped nearly 1,700 points, or more than 2 percent, to an intraday low of 75,868, while the Nifty 50 slipped 500 points, or 2 percent, to 23,556.

The sell-off was broad-based, dragging down all segments of the market. The Nifty Midcap 100 and Smallcap 100 indices also declined over 2 percent each.

Investor wealth took a sharp hit, with the total market capitalisation of BSE-listed companies falling by about Rs 8 lakh crore within minutes—dropping to Rs 443 lakh crore around 9:20 am from Rs 451 lakh crore in the previous

session.

Key factors behind the market decline

1) US-Iran talks fail to deliver a breakthrough
The weekend ceasefire talks between the US and Iran ended without a resolution, dampening hopes of easing one of the biggest geopolitical risks for global markets. Adding to concerns, reports of a potential US blockade of the Strait of Hormuz have heightened fears of a disruption in global energy supplies.

Uncertainty around how the West Asia situation will unfold has kept investors on edge. Markets are increasingly worried that a prolonged conflict could hurt global growth this year and weigh on market performance into 2026.

2) Spike in crude oil prices
Brent crude hovered around $102 per barrel, rising about 7 percent amid fears that any blockade could disrupt energy flows through the crucial Strait of Hormuz. Oil and gas prices surged after US President Donald Trump indicated that vessels paying Iran for passage could face interception.

3) Fresh tariff threats from the US
Geopolitical tensions were further exacerbated by renewed trade rhetoric. Reports suggest that Donald Trump warned of a potential 50 percent tariff on China if it supplies weapons to Iran, raising the risk of another round of global trade tensions.

4) Weak global cues
Indian markets tracked losses across Asia. Major indices such as Japan’s Nikkei and South Korea’s Kospi fell over 1 percent each, while China’s Shanghai Composite also slipped, reflecting fragile global sentiment amid geopolitical uncertainty.

Market experts caution that developments around the US naval blockade could trigger sharp swings. “How the situation evolves remains uncertain… the ideal strategy in such times is to wait and watch,” said VK Vijayakumar.

5) Sharp sell-off in banking stocks
Banking stocks saw heavy selling pressure, dragging the broader market lower. The Bank Nifty fell over 2 percent, with both PSU and private bank indices declining up to 3 percent, adding to the downside momentum.