Middle East Tension: Sensex Crashes 1,400 Points, Nifty Slips Below 23,000; Titan Drops 2%

New Delhi: The beginning of the week was not good for the stock market. The market appeared to be under pressure as soon as it opened on Monday morning. Within a few minutes, the Sensex fell by about 1500 points and the Nifty also slipped to around 22,600. The atmosphere clearly appeared weak.

What is the reason for the decline?

The ongoing tension in West Asia does not seem to be stopping yet. Oil prices remain high. Because of this, the confidence of investors has wavered a bit. There seems to be a lot of uncertainty in the market at present.

How much did the initial business decline?

Sensex fell by about 1,520 points and came to around 73 thousand. Nifty also slipped down by about 485 points. Selling dominated right from the beginning.

Which sector showed the most pressure?

Metal and PSU bank shares saw more decline. Realty, auto and financial shares also remained under pressure. Almost every sector was in the red.

Did anyone hold any shares?

Not completely, but the IT sector provided some relief. Shares like HCL Tech and TCS were seen in light green, while most of the other shares were down.

What was the condition of the broader market?

Midcap and smallcap shares also could not survive. Both the indexes fell by about 3%, which clearly shows that the fall was not limited to big stocks only.

Is fear increasing in the market?

There has been a sharp rise in India VIX, which shows that fear is increasing in the market. Investors are currently avoiding taking risks.

What should investors do now?

Experts say that in such times one should avoid taking decisions in panic. There will be ups and downs in the market, but haste can cause losses. Right now, waiting and caution are considered better strategies.

Can the decline continue further?

At present the indications are that market fluctuations may continue. Until tensions in the Middle East subside and oil prices stabilize, investors will remain cautious. In such a situation, the market can react quickly to every piece of news; hence, there is a possibility of movement in the coming days also.