The Indian stock market witnessed a massive sell-off on Monday as global geopolitical tensions triggered panic among investors. The BSE Sensex closed the session with a staggering loss of 1,837 points, ending at 72,696. Similarly, the Nifty 50 dropped below the 22,550 mark. This brutal decline resulted in the erosion of approximately ₹14 lakh crore from the total market capitalization of all BSE-listed companies in a single day.

Why did the market crash? The primary catalyst for this freefall is the escalating conflict between Iran and the US-Israel alliance. Iran’s threat to close the Strait of Hormuz has pushed Brent crude prices above $113 per barrel, raising severe inflation concerns for India. Furthermore, the Indian Rupee hit an all-time low of 94 against the US Dollar. Persistent selling by Foreign Institutional Investors (FIIs) and rising US bond yields also contributed significantly to the risk-off sentiment across global markets.

What should investors do? Market analysts advise against panic selling during such volatile periods. While the current downturn looks scary, it is driven by global news rather than domestic economic weakness. Long-term investors should hold onto fundamentally strong stocks and continue their SIPs to benefit from rupee-cost averaging. Any positive development or de-escalation signal from global leaders could trigger a sharp recovery in the coming sessions.