Domestic stock markets are witnessing a fall like never before. In the past 15 years, there has not been an instance where the stock markets have fallen to this extent. In 2026 itself, that is, within less than three months after entering the new year, a massive 533 billion dollars in market capitalization has been wiped out. In Indian currency, this amounts to nearly Rs. 48 lakh crore. After the year 2011, this is the first time such a sharp fall has been seen in the stock market, according to a report by Moneycontrol. For a few days, the issue of American tariffs shook the markets. Later, IT stocks faced heavy selling pressure due to fears related to AI. Just when it appeared that things had settled down, the markets once again slipped into heavy losses after the United States and Israel jointly launched attacks on Iran on February 28.
Even though it has been nearly two weeks since this war started, no one clearly knows when and how it will end. On one side the United States and on the other side Iran are continuing to issue challenges to each other. With this war pushing crude oil prices beyond 100 dollars per barrel, global markets have also been shaken. Along with rising oil prices, the gas crisis could push inflation higher in the coming days and negatively impact economies. With increasing oil prices, the value of the rupee against the dollar is reaching a new low almost every day. Experts warn that this could lead to many problems in the coming days. If the war continues for a few more days, there is a risk that oil prices may rise further.
Although several countries have already started releasing their reserves, it remains to be seen how far these measures will help stabilize international prices. Even on this Friday, the stock markets witnessed heavy losses. In a single day, market value worth Rs. 10 lakh crore was wiped out. The BSE Sensex closed at 74,563 points, down 1,470 points. The Nifty 50 closed at 23,151 points, down 488 points. Over the past few days, foreign institutional investors (FIIs) have been carrying out large-scale selling in the domestic market. At a time when estimates were being made that the Sensex would touch one lakh points this year, the markets are recording heavy losses due to unexpected developments. There are expectations that the same uncertainty may continue in the market for a few more days. Experts in this sector say that clarity on many issues is required for the market to regain momentum.