The Indian stock market suffered significant intraday losses on Monday, 13 July, with the benchmarks, the Sensex and the Nifty 50, falling nearly 1% each amid weak global cues.
The Sensex dropped over 700 points, or nearly 1%, to an intraday low of 76,857, while the Nifty 50 shed more than 200 points, or nearly 1%, to an intraday low of 24,000.
The mid and small-cap segments also declined. The Nifty Midcap 100 and Smallcap 100 indices also dropped by up to 1%.
The overall market capitalisation of BSE-listed firms dropped to ₹480 lakh crore from ₹481.75 lakh crore in the previous session, making investors poorer by nearly ₹2 lakh crore.
Bank Nifty, Nifty Financial Services, Nifty Metal, and Nifty Auto dropped up to 1% in the morning trade.
Why is the stock market falling today?
Experts highlight the following five factors behind the crash in the stock market:
1. Escalating US-Iran tensions
The US and Iran have exchanged heavy missile and drone assaults over the last few days, with media reports claiming Tehran has again closed the Strait of Hormuz.
The US Central Command (CENTCOM) on Saturday (local time) announced that it completed a third round of strikes this week against Iran, holding Iranian forces accountable for attacking another commercial ship in the Strait of Hormuz.
Escalating tensions between the US and Iran have revived concerns about inflationary pressures, which could prompt aggressive monetary tightening by the US Federal Reserve and other major global central banks.
2. Crude oil prices jump
Crude oil benchmark Brent crude jumped over 4% to trade above $79 per barrel on Monday due to the tensions between the US and Iran.
A spike in oil prices has reignited concerns about its impact on India’s fiscal math, as the country is the world’s third-largest importer of crude oil and meets about 85–90% of its total crude oil requirement through imports.
“The back-and-forth in the West Asia crisis has become the new normal. From a market perspective, crude oil prices are a crucial factor. There is no panic in the oil market like in March. Brent is currently trading around $79. So long as Brent trades below $90, the market won’t be impacted significantly. But if Brent shoots up to above $90, there can be a significant correction in the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, noted.
3. India VIX jumps 10%
Volatility index India VIX surged over 10%, hinting at increased market nervousness amid escalating Middle East conflict.
The volatility index fell to its five-month low of 11.05 on 7 July, when the US and Iran were engaged in technical talks, and markets were not pricing in any major volatility.
However, developments in the Middle East over the past few days have shattered investors’ expectations of a market recovery, triggering panic selling.
4. Rise in the US dollar, bond yields
The dollar index rose by about 0.30%, while the 10-year bond yield climbed to 4.58%, as expectations of US Federal Reserve rate hikes gain momentum.
Rate hikes may further boost the US dollar and bond yields, driving foreign capital away from emerging markets like India.
At this juncture, FIIs appear to be reducing concentration risk in AI stocks and moving money to other markets, such as India. However, experts warn that if the Middle East conflict persists and oil prices remain elevated for a prolonged period, the Indian stock market may again see foreign capital outflows.
5. Technical factor
The Nifty touched an intraday low of 24,000, which is a psychologically important level for the index.
Shrikant Chouhan, the head of equity research at Kotak Securities, said a sustained move below 24,000 could trigger a retest of the 50-day SMA at 23,800, while a decisive breach of this support would increase the probability of an extended decline towards 23,600-23,500.
As per Rajesh Palviya, Head of Research, Axis Direct, the immediate support for Nifty 50 is placed at 24,000, while a decisive break could lead to profit booking towards 23,800.
Vipin Kumar, AVP-Research at Globe Capital Market, highlighted that the Nifty has been in a “broadening” formation since 15 June 2026, indicating further consolidation in the 23,800–24,600 spot zone.
He added that a Doji-type weekly candlestick that overshadows the past three weeks’ candles is also an indication of indecisiveness among traders, pointing toward further consolidation at the current juncture.
As per Kumar, a break on either side of the 23,800–24,600 range will trigger the next short-term directional move.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
