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A broad-based selloff battered the Indian stock market on Thursday, April 30, dragging the benchmark indices, Sensex and Nifty 50, lower.

The 30-share pack Sensex fell 583 points, or 0.75%, to end at 76,913.50, while the NSE counterpart Nifty 50 declined 180 points, or 0.74%, to settle at 23,997.55. The BSE 150 Midcap and the BSE 250 Smallcap indices fell by 1% and 0.50%, respectively.

As many as 34 stocks ended lower in the Nifty 50 index, among which Eternal, Tata Motors Passenger Vehicles, Hindalco Industries, Hindustan Unilever, and Tata Steel lost the most.

On the other hand, Bajaj Auto, Sun Pharma, Infosys, Bajaj Finance, and Tech Mahindra ended as the top gainers in the index.

Among the sectors, Nifty Metal fell more than 2%, followed by Consumer Durables, PSU Bank, Realty, and FMCG, each declining more than 1%.

Nifty Bank and Financial Services indices dropped by 1% each.

Investors lost about ₹5 lakh crore as the overall market capitalisation of BSE-listed firms dropped to ₹464 lakh crore from nearly ₹469 lakh crore in the previous session.

On a monthly scale, however, the Sensex and the Nifty 50 rose by 7% and 7.5%, respectively, in April, snapping their four-month losing streak.

Let's take a look at 5 key factors behind the stock market crash today:

While possible talks between the US and Iran remain stalled, there are reports of fresh escalation in tensions between the two countries.

The US is increasing its pressure on Iran. However, the West Asian country is refusing to back down.

According to a report by Fox News citing US officials, the United States Department of the Treasury has frozen more than $344 million in cryptocurrency tied to Iran to cut off Tehran’s access to global revenue streams.

Moreover, a Bloomberg report suggested that the US Central Command has asked to send the Army’s long-delayed Dark Eagle hypersonic missile to the Middle East for possible use against Iran.

Russian President Vladimir Putin has warned the US of "damaging consequences" of a new military action in Iran, a Kremlin aide told reporters Wednesday after the two leaders spoke by phone.

Elevated crude oil prices weighed on sentiment, fanning concerns that higher oil prices will drive up inflationary pressures. Brent Crude eased 2% but still traded above the $115 per barrel.

For a large oil importer like India, the situation is more alarming as it can have a serious impact on the country's growth and inflation trajectory.

According to Reuters, the Indian rupee fell 0.50% to its record low of 95.33 per dollar during the session. It, however, pared losses to end at 94.91 per dollar.

The domestic currency appears set to witness its third consecutive weekly loss, having erased nearly all gains achieved earlier in the month after the central bank implemented rare measures to reduce excessive speculation.

The rupee's weakness can accelerate foreign capital outflow from the Indian market, weighing on sentiment.

The US Federal Reserve on 29 April kept the benchmark interest rate steady as expected. However, Fed Chair Jerome Powell's slightly hawkish tone seems to have worried markets.

Powell warned of inflationary pressures and said the impact of higher energy prices cannot be assessed at this juncture. This indicated the Fed could be in a pause mode for interest rates for a longer period.

According to Reuters, traders are expecting no rate cuts this year and even see a 30% chance of a hike by March 2027.

Foreign institutional investors (FIIs) have been selling Indian stocks aggressively, weighing on market sentiment. After buying for a few days in the middle of this month, they have again turned sellers and have been selling Indian stocks for the last eight consecutive sessions in the cash segment.

On a monthly basis, FIIs have been selling Indian stocks in the cash segment since July last year, with April's selloff exceeding ₹62,000 crore.

Read all market-related news here

stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. 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.

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