Stock markets bleed, investors lose over Rs 8.47 lakh crore: Check 5 reasons behind the rout

New Delhi: The BSE benchmark Sensex plunged 1,747 points while the Nifty crashed below the 17,000-level on Monday. This was its biggest single-day drop since February 26, 2021. Similarly, the broader NSE Nifty closed below the key 17,000-level for the first time this year. 

All 19 BSE sectoral indices suffered losses, with realty, metal and banking plummeting over 5 per cent. Broader smallcap, midcap and largecap indices shed as much as 4.15 per cent.

Investors' wealth plummeted by more than Rs 8.47 lakh crore on Monday. Investors have lost more than Rs 12.38 lakh crore in two days, with the market capitalisation of all BSE-listed firms standing at Rs 2,55,42,725.42 crore. 

Here are 5 reasons why the markets witnessed such a massive rout

Increased tension between the US and Russia over Ukraine sent oil prices rising and forced investors to dump risky assets. Crude oil prices surged to a seven-year high in the international markets amid intensifying tensions between Ukraine and Russia. Ukraine combined with a steady uptick in crude is not going well with the participants, believe experts. 

A depreciating rupee and foreign fund outflows also added to the gloom.

Risk sentiment was further dampened ahead of the Fed's emergency meeting which heightened fears of aggressive monetary tightening.

On the domestic front, the annual WPI inflation eased marginally to 12.96 per cent in January from 13.56 per cent in December, but still high, amid moderation in the fuel and power prices.

Elsewhere in Asia, bourses closed deep in the red after concerns that Russia may soon invade Ukraine, which also sent oil prices soaring. Markets in Europe too were trading with heavy losses in the afternoon session.