Sensex crashes 2,497 points in biggest fall in 22 months; Rs 13 lakh crore investor wealth wiped out

PTC Web Desk: India’s equity markets witnessed a sharp sell-off on March 19, marking the steepest decline in the last 22 months. The benchmark Sensex plunged 2,497 points, or 3.26%, to close at 74,207, while the Nifty dropped 776 points, also down 3.26%, settling at 23,002.

This marks the biggest single-day fall since June 4, 2024, when the Sensex had tumbled 5.74%. The decline was led by heavy selling in banking and auto stocks, dragging the broader indices lower.

Investor wealth shrinks by Rs 13 lakh crore

The sharp correction wiped out massive investor wealth in a single session. The total market capitalisation of companies listed on the BSE dropped from Rs 439 lakh crore to Rs 426 lakh crore, resulting in an erosion of nearly Rs 13 lakh crore.

Why did the market fall? Key reasons explained

The downturn in Indian equities was largely driven by a combination of global and domestic triggers. Escalating conflict involving the United States, Israel and Iran has disrupted global supply chains. Such uncertainty often leads to risk aversion among investors, prompting them to shift funds to safer assets.

Crude oil prices jumped sharply, with global benchmark Brent crude rising over 4% to cross $112 per barrel. Meanwhile, India’s crude basket surged to nearly $146 per barrel. Higher oil prices raise inflation concerns and reduce corporate profitability, adding pressure on equities.

Global markets remained under pressure, influencing domestic sentiment:

Japan’s Nikkei fell 3.38%

South Korea’s Kospi declined 2.73%

Hong Kong’s Hang Seng dropped 2.02%

China’s Shanghai Composite slipped 1.39%

In the US, markets also ended lower on March 18:

Dow Jones fell 768 points (1.63%)

Nasdaq declined 1.46%

S&P 500 dropped 1.36%

Banking shock: HDFC bank shares fall over 5%

Adding to the market pressure, shares of HDFC Bank declined 5.11% after its Part-Time Chairman and Independent Director, Atanu Chakraborty, resigned late Wednesday night. The stock fell by Rs 43 to close at Rs 800.

In his resignation note, Chakraborty raised concerns about certain internal practices, stating that some developments over the past two years did not align with his personal values and ethics.

Following his exit, Keki Mistry has been appointed as interim chairman for three months, effective March 19, 2026, subject to regulatory approval. He was earlier serving as a non-executive director on the bank’s board.

Understanding crude oil benchmarks

Globally, crude oil prices are determined by three primary benchmarks:

Brent Crude: Extracted from the North Sea and used as a global pricing standard

WTI (West Texas Intermediate): US-based crude known for its purity

OPEC Basket: An average price of oil produced by OPEC member nations

India imports oil from multiple countries, including Iraq, Saudi Arabia, Russia and the UAE. The average cost of these imports is referred to as the “Indian basket.”

Market context: A day after gains

The sharp fall comes just a day after markets had posted gains. On March 18, the Sensex had risen 633 points to close at 76,704, while the Nifty had gained 197 points to end at 23,778, supported by buying in IT and realty stocks.

With geopolitical tensions intensifying and crude oil prices remaining elevated, volatility is expected to persist in the near term. Investors are likely to stay cautious, tracking global developments and inflation risks closely.