Today's stock market: the Sensex plunges more than 800 points and continues to lose on the fourth day; Five reasons for the bloodbath on D-Street

Today's stock market: In early trading, the Sensex fell more than 800 points. Within five minutes of the commencement of trading, investors lost almost ₹5 lakh crore as the total market capitalization of BSE-listed companies fell to almost ₹425 lakh crore from ₹430 lakh crore in the previous session.

Today's stock market: On Monday, January 13, the Indian stock market saw a severe selloff in all categories for the fourth straight day due to a decline in the value of the rupee, a large outflow of foreign capital, and rising crude oil prices.

In contrast to its previous finish of 77,378.91, the Sensex began at 76,629.90 and plummeted more than 800 points, or more than 1%, to an intraday low of 76,535.24. After closing at 23,431.50, the Nifty 50 began at 23,195.40 and surged more than 250 points, or more than 1%, to reach 23,172.70. As has been the case recently, the mid and smallcap groups saw a significant selloff. The BSE Smallcap and Midcap indices saw a 2% decrease.

Within five minutes of the commencement of trading, investors lost almost ₹5 lakh crore as the total market capitalization of BSE-listed companies fell to almost ₹425 lakh crore from ₹430 lakh crore in the previous session.

Five reasons for the decline in the Indian stock market

1. Boiling oil
A Reuters story claims that Monday's opening saw oil prices reach their highest point in over three months. Expectations that the US sanctions will impact Russian crude supply to the world's largest importers, China and India, have contributed to the increase in oil prices.

"The Biden administration on Friday imposed its broadest package of sanctions yet targeting Russia's oil and gas revenues in an attempt to give Kyiv and the incoming administration of Donald Trump leverage to reach a deal for peace in Ukraine," according to Reuters.

Being one of the biggest importers of crude oil, rising prices have a detrimental effect on India's financial situation. A spike in crude oil prices deals a new blow to investor morale at a time when inflation worries are still present and economic growth appears to be slowing down. Additionally, it can worsen outflows of foreign capital and put more pressure on the home currency.

 
2. Rupee hits new lows
Amid rising crude oil prices and an elevated dollar, the Indian rupee fell 23 paise to a lifetime low of 86.27 against the US dollar in early trading on Monday. Following a solid payrolls data on Friday, the US dollar remained close to 14-month highs.

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