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Why Is Share Market Falling Today? Factors Behind Sensex, Nifty Crash On March 4

Why Is Share Market Falling Today? Factors Behind Sensex, Nifty Crash On March 4
Continuing its downward journey amid escalating conflict in West Asia, the Nifty 50 on March 4 fell around 1.95% to 24,380 and the BSE Sensex plummeted nearly 1,500 points to trade at 78,748. The sell-off was broad-based across segments of the market.
Broader markets also came under pressure. The Nifty Midcap 100 fell 2.71%, the Nifty Smallcap 100 declined 2.76%, and the Nifty Microcap 250 dropped 2.90%, reflecting widespread risk-off sentiment and liquidity withdrawal from smaller stocks.
Volatility spiked sharply, with the India VIX jumping 23.48% to 21.15, signalling heightened investor anxiety.
Among sectoral indices, Nifty Metal was the worst performer, plunging 4.71%, followed by Nifty PSU Bank (-4.12%), Nifty Realty (-4.30%), and Nifty Auto (-3.18%). These sectors are typically sensitive to economic cycles and global risk sentiment.
On the other hand, Nifty IT showed relative resilience, slipping only 0.10%, supported by gains in frontline technology stocks, which tend to benefit from a weaker rupee and their export-oriented revenue mix.
1) Weak Global Cues
Global markets remained under pressure, which weighed on investor sentiment. Most Asian indices traded lower, with South Korea’s benchmark KOSPI plunging sharply. The Korea Exchange even triggered circuit breakers, halting trading for 20 minutes after the index dropped around 8%. Meanwhile, Wall Street futures also pointed to a weak opening for US markets.
2) Escalating West Asia Tensions
Geopolitical tensions in West Asia continued to keep investors on edge. Loud explosions were reported in Iran’s capital Tehran as the conflict involving Iran, the US and Israel entered its fifth day. The developments follow earlier strikes on an Iranian nuclear site and retaliatory missile attacks across the Gulf region.
3) Surge in Crude Oil Prices
Rising crude oil prices also dented market sentiment. Oil climbed to a 19-month high amid intensifying clashes between the US, Israel and Iran, raising concerns about potential supply disruptions and inflationary pressures globally.
Anand James, chief market strategist at Geojit Investments Limited, said, “The recovery attempts that may be expected post downside gapped opening today need to sustain Nifty above 24500, In order to discourage bears from regrouping. Else, expect 24000-23550. Do account for wild swings, given the spike in VIX on Monday to the highest level since June 2025."
Source: News18
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