Why is market down today: Top reasons behind Sensex, Nifty crash 

Sensex and Nifty extended their losses for the second session today after war between US, Israel and Iran intensified, sending brent crude oil prices to $85 per barrel. Sensex crashed 1795 points intra day to 78,443 and Nifty tanked 560 points to 24,305. 

At 11:09 am, Sensex crashed 1355 pts to 78,883 and Nifty lost 414 pts to 24,451. 

Market cap of BSE-listed firms fell by Rs 9.13 lakh crore to Rs 447.42 lakh crore today against the market cap of Rs 456.55  lakh crore on March 2. 

This is the fourth straight session of fall for the stock market today. 

Infosys, BEL, Tech Mahindra and Bharti Airtel were the only Sensex gainers rising up to 1.21% in early deals. 

L&T, Tata Steel, IndiGo, Ultratech Cements, Titan and Bajaj Finserv were the top Sensex losers falling up to 6.60%. 

All BSE sectoral indices were trading in the red.  

Capital goods, banking and auto shares were among the top losers with their BSE indices crashing 1180 pts, 1517 pts and 1784 pts in late morning deals. 

BSE consumer durables and metals indices too tanked 1693 pts and 1592 pts, respectively. 

Bears sent 561 shares to their 52-week lows and 45 shares managed to hit their 52-week highs on BSE amid negative market sentiment today. 

Market breadth was negative with 843 stocks trading higher against 3094 stocks falling on BSE. 167 shares were unchanged. 

Here's a look at key factors, which led to the market crash today. 

US-Israel-Iran war 

US and Iran war intensified on its fourth day, leading to a global rout in the stock market. US President Donald Trump's statement that wars can be fought forever worsened global market sentiment amid fears that the end to this war was not lileyt soon. 

Rising oil prices 

Brent crude prices hit a fresh high of $85 per barrel after operations were halted on Tuesday afternoon in Iraq's Rumaila oil field amid the escalation of conflict in the Middle East. Iraq cited the closure of the Strait of Hormuz behind the oil output cut move.

The temporary shutdown of Saudi's oil refinery Ras Tanura after drone attack from Iran also led to supply concerns in the global oil market. The refinery, among the largest in Saudi Arabia, can process 550,000 barrels of crude oil per day. 

Asian markets rout

Bears extended their party on Asian bourses as the war in Middle East dented market sentiment. Hang Seng fell 800 pts to 24,968 and Nikkei tumbled 2359 pts to 53,948 in trade today. 

Nifty Outlook

Anand James, Chief Market Strategist, Geojit Investments said, "The recovery attempts that may be expected post downside gapped opening today need to sustain Nifty above 24500, In order to discourage bears from regrouping. Else, expect 24000-23550. Do account for wild swings, given the spike in VIX on Monday to the highest level since June 2025."

India VIX 

The India VIX index surged 22.47% to 20.98, signalling heightened volatility on Dalal Street as war threatened to affect fiscal deficit via oil price spike. Often referred to as the "fear index," it gauges investor sentiment and fear, helping traders predict potential market swings.