Sensex slips below 73,000, Nifty tests 22,600: Why stock market is falling today

Benchmark stock indices Sensex and Nifty fell on Monday, losing psychological marks as the West Asia crisis sent Brent oil prices higher for sixth straight session, raising inflationary concerns. The fresh trigger comes after the US President Donald Trump gave a 48-hour ultimatum to Iran to "fully open" the crucial waterway, which carries about 20 per cent of the global crude oil supply. Also, Iran suggested that would hit region’s energy sites if the US and Israel target its power plants. 

Brent oil futures for June delivery were up 1.58 per cent at $108.08 a barrel. This sent Asian markets tumbling today. Japan's Nikkei plummeted 3.9 per cent, China's Shanghai Composite declined 2.5 per cent while Hong Kong's Hang Seng tanked 3.4 per cent. India's benchmarks fared relatively well. 

"With the war in West Asia getting into the fourth week, there is no clarity on when the war will end. Unfortunately, the war is escalating   with President Trump giving ultimatum to Iran to open the Strait of Hormuz in 48 hours. Iranian president’s response that “ the Strait of Hormuz is open to all except those who violate our soil” has prevented panic in the oil market. However, the uncertainty is huge and markets will be waiting and watching the outcome. 

Sensex slipped over 1,550 points to sub-73,000 level. It was later trading 1,430.45 points or 1.91 per cent at 73,102.51. Nifty hit a low of 22,582.30. It was later quoting at 22,651.85, down 462.65 points or 2 per cent. 

Weakness in banking names such as HDFC Bank Ltd, State Bank of India and ICICI Bank Ltd also weighed heavy on indices. Investors were also concerned over rupee that hit a fresh low, as foreign outflows for March mounted to Rs 88,180 crore.

"Going ahead, to pause the ongoing corrective phase, Nifty needs to decisively close above previous sessions high (23,345). A failure to do so would result into extended correction wherein key support is placed in the zone of 22,700-22,500 being 80 per cent retracement of the April 2025-February 2026 up move (21,743-26.373)coincided with support trend line drawn adjoining 2024-25 lows (21,137-21,743), ICICI Direct said earlier today.

Iran has intensified the use of long-range missiles and low-cost drone warfare, redefining modern warfare strategies. There is also a rising risk that any disruption to critical infrastructure such as energy, power, or water supply could push the Middle East into a deeper economic and humanitarian crisis, which would have broader global financial implications," said Ponmudi R, CEO of Enrich Money.

What should investors do?
Considering the recent volatile price action and continued weakness in both the Nifty 50 and Nifty Bank, along with cautious global cues and persistent selling pressure at higher levels, investors are advised to maintain a disciplined and cautious approach. 

Hitesh Tailor, Research Analyst at Choice Equity Broking said it would be prudent to focus on accumulating fundamentally strong stocks on meaningful declines rather than chasing any short-term bounce. 

Fresh long positions should ideally be considered only once the Nifty manages a decisive recovery and sustains above the 24,500–25,000 mark, as this would indicate improving market sentiment and could pave the way for a more stable recovery ahead," it said.