Why is market down today? Top reasons behind share bazaar crash amid Iran, Israel, US news

Sensex tanked nearly 2,750 points in opening trade today as investor sentiment took a major hit in the Indian stock market amid US-Iran war. Nifty too saw a dent in investor sentiment with geopolitical tensions giving bears a firm grip in global stock markets. Sensex crashed 2,744 points intra day to 78,543 and Nifty tanked 533 points to 24,645. Later, the panic selling abated with Sensex falling 1224 points to 80,063 and Nifty trading 372 pts lower at 24,807.

Market cap of BSE-listed firms fell by Rs 6.82 lakh crore to Rs 456.55 lakh crore today against the market cap of Rs 463.51 lakh crore on Friday (February 27).  

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

All sectoral indices were trading in the red on Monday.  

Consumer durables and auto shares were the major losers with their BSE indices tanking 1222 points and 1618 pts, respectively. Among other major losers were BSE IT tanking 425 pts, BSE oil and gas crashing 522 and BSE bankex tanking 818 pts. 

Bears sent 762 shares to their 52-week lows and 81 shares managed to hit their 52-week highs on BSE amid negative market sentiment today. 

BEL, Sun Pharma and Bharti Airtel shares were the only Sensex gainers, rising up to 2.22% on Monday

L&T, IndiGo, Adani Ports, Maruti, M&M and Asian Paints were the top losers, slipping up to 5.69% today.

Market breadth was negative with 679 stocks trading higher against 3405 stocks falling on BSE. 192 shares were unchanged. 

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

US-Iran war 

US and Iran war saw a rise in exchange of missiles and drone attacks, sending shockwaves across global markets. Analysts said if the war escalates, it could wreck sentiment in the stock market and take Sensex and Nifty to new lows. 

Rising oil prices 

Brent crude prices rose 12.37% to $81.89 per barrel, denting sentiment across the stock market today. 

Weak Asian markets 

Asian markets saw bouts of selling on Monday as the war in Middle East dented market sentiment. Hang Seng fell 520 pts to 26,108 and Nikkei tumbled 1035 pts to 1035.27  on Monday. 

Technical view

Shrikant Chouhan from Kotak Securities said, "The immediate level to watch is 25,000. A sustained move below this mark could increase pressure, as the next significant support is placed in the 24,500–24,350 zone. On the upside, the earlier support at 25,400 is now expected to act as a strong resistance. A decisive close above 25,400 could trigger a pullback rally towards 25,600."

Chauhan advises to Buy Nifty in the 24,600–24,500 range with a final stop loss placed at 24,300.

Axis Securities said, "Markets will closely monitor developments around US trade tariffs, evolving US–Iran tensions, and rising concerns over AI-led disruption in the IT sector, which may continue to influence sentiment".

India VIX 

The India VIX index surged 19.48% to 16.37, indicating heightened volatility on Dalal Street amid a wave of attacks between Irand and the US. Often referred to as the "fear index," it gauges investor sentiment and fear, helping traders predict potential market swings.