Indian stock markets witnessed massive selling pressure on Tuesday as benchmark indices suffered sharp losses amid global uncertainty, rising crude oil prices and continued weakness in the Indian rupee.

The benchmark BSE Sensex plunged 1,456 points or 1.92 percent to close at 74,559.24 points. Meanwhile, the NIFTY 50 dropped 436 points to settle at 23,379.55 points.

Investors Lose More Than Rs 11 Lakh Crore

The sharp fall in the markets wiped out more than Rs 11 lakh crore of investors’ wealth in a single trading session.

Following the crash, the total market capitalisation of companies listed on the Bombay Stock Exchange declined to nearly Rs 456 lakh crore.

Over the last four trading sessions, the Sensex has fallen around 3,400 points or 4.4 percent, while the Nifty has declined nearly 4 percent. During this period, investors reportedly suffered losses of around Rs 17 lakh crore.

Market Capitalisation Sees Sharp Decline

On June 6, the total market capitalisation of BSE-listed companies stood at around Rs 473 lakh crore. However, the continued market decline has dragged it down to Rs 456 lakh crore.

Analysts believe a combination of domestic and global factors has triggered panic selling across sectors.

Global Tensions and Crude Oil Prices Impact Markets

One of the major reasons behind the market downturn is uncertainty surrounding the ceasefire situation between the United States and Iran in the Middle East.

Concerns over geopolitical tensions have pushed international crude oil prices above 107 US dollars per barrel, increasing fears of inflationary pressure on economies worldwide.

Weak Rupee and Foreign Investor Selling Add Pressure

The Indian rupee also weakened sharply against the US dollar and slipped to a record low level, adding further pressure on market sentiment.

At the same time, foreign institutional investors have continued pulling money out of Indian equity markets, contributing to the heavy decline in Dalal Street.

PM Modi’s Fuel Consumption Appeal Also Draws Attention

Market experts also pointed to Prime Minister Narendra Modi’s recent appeal urging citizens to reduce petrol and diesel consumption amid rising global energy concerns.

The statement has added to worries over increasing fuel prices and their possible impact on economic growth and consumer spending in the coming months.