Stock market crash takes Sensex to 6-month low; index tanks 5% in a month as investors lose Rs 17 lakh crore
Stock market crash today: The stock market is bleeding badly and today’s crash has taken the 30-share index, BSE Sensex, to a six-month low! Indian equity benchmarks have not been hitting new highs for two years now, but the latest bloodbath suggests that bears have firmly taken hold of the stock market.Global economic turmoil and geopolitical uncertainty are weighing heavily on investor sentiment, but even as they look for safe haven assets to park money, gold too has been tanking.The sell-off intensified on Monday. The BSE benchmark plunged 1,124.02 points, or 1.52%, to close at 72,771.72, marking its lowest closing level since March 30, 2026. The Nifty fell 360.25 points, or 1.56%, to finish at 22,780.25, its lowest level in nearly six months.Also Read | Why are gold prices crashing today? MCX Gold down Rs 3,200/10 grams, plunges over 2% – top reasons for fall
Market crash in numbers
The decline on Monday alone resulted in an erosion of Rs 7.52 lakh crore in investor wealth.Among the 30 Sensex constituents, 29 finished lower. Larsen & Toubro was the biggest loser, declining 2.81%. Power Grid fell 2.62%, Adani Ports slipped 2.38%, HDFC Bank dropped 2.30%, Hindustan Unilever declined 2.27% and Reliance Industries lost 2.24%.Infosys was the only Sensex stock to end higher.The weakness was also visible beyond the frontline indices. The BSE SmallCap Select index fell 1.90%, while the MidCap Select index declined 1.39%.Every BSE sectoral index ended lower. PSU Bank recorded the steepest fall at 3.25%, followed by Power at 2.30% and Telecommunication at 2.30%. Utilities declined 2.27%, MidSmall Private Banks fell 2.17%, Industrials dropped 2%, MidSmall Private Banks Quality Tilt declined 1.99%, Services fell 1.93% and the Private Banks index lost 1.86%.Sensex and Nifty have lost more than 5% each over the past month, with a combination of sharply higher crude oil prices, geopolitical uncertainty and elevated bond yields weighing on investor sentiment. The decline has wiped out Rs 17.17 lakh crore of investor wealth, according to a PTI report.Expectations that the US Federal Reserve could tighten monetary policy further have also added to the pressure on equities during the period.Since August 27 last month, the 30-share BSE Sensex has fallen 4,161.87 points, or 5.40%, while the 50-share NSE Nifty has declined 1,310.6 points, which is a 5.44% drop.The erosion in market wealth stood at Rs 17,17,487.02 crore during the period, taking investors’ total wealth down to Rs 4,74,36,620.19 crore, which is around $4.94 trillion.
Why is stock market down & what’s the outlook?
Rising crude oil prices, geopolitical uncertainty and weak global market cues are weighing heavily on investor sentiment.Analysts have attributed the sell-off to a sharp rise in crude oil prices following the continuing US-Iran deadlock over reopening the Strait of Hormuz.Persistent foreign fund selling, higher US bond yields and weak Asian markets added to the pressure, triggering declines across financial, PSU bank, metal, FMCG, oil and gas and automobile stocks.Foreign Institutional Investors (FIIs) remained net sellers in the equity market, offloading shares worth Rs 3,693.93 crore on Friday, according to exchange data.According to Vinod Nair, Head of Research, Geojit Investments Limited, bears remain firmly in control and the market has breached a key psychological support level.“This reflects growing investor caution amid deteriorating global macro conditions. The US rejection of the ceasefire proposal has heightened concerns that tensions in West Asia could persist for longer than anticipated, reducing the likelihood of a near-term diplomatic resolution and increasing the risk of prolonged supply-side disruptions and higher commodity prices,” Vinod Nair said.The analyst added that higher US bond yields were reducing the India-US yield differential, which could encourage foreign fund outflows and keep sentiment subdued.Brent crude, the global benchmark for oil prices, rose nearly 4% to $108.3 per barrel.An expert said Brent crude at $108 per barrel, along with the US 10-year Treasury yield at 5.2%, were significant headwinds for the equity market.“As the geopolitical situation turned bleak amid the escalating US-Iran conflict, global crude oil prices jumped sharply, triggering a broader sell-off in domestic equity markets. With US bond yields already scaling above 5 per cent and markets seeing little respite from overseas fund outflows, the undertone is likely to remain cautious with a negative bias in the near to medium term,” Ankur Punj, Managing Director, Equirus Wealth, said.Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said higher global bond yields and a stronger US dollar continued to pose challenges for emerging markets. Tighter financial conditions, he added, could put pressure on foreign portfolio flows as well as overall investor risk appetite.According to Ajit Mishra, SVP – research, Religare Broking, the 22,400–22,600 zone is likely to act as the next critical support zone while 23,000–23,100 is likely to turn into the immediate hurdle and 23,400 remains the next major resistance.“With the index extending its corrective phase and volatility rising sharply, the near-term setup remains cautious, with stock-specific opportunities likely to emerge selectively,” he says.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)
