Bloodbath at D-Street: Why is stock market down today? Top reasons explained
Stock market crash today: While Sensex crashed over 1,000 points, Nifty50 went below 22,850. At 10:40 AM, Nifty50 was trading at 22,835.15, down 305 points or 1.32%. BSE Sensex was at 72,909.34, down 986 points or 1.33%.
The Indian stock market experienced a significant decline on Monday, with both the BSE Sensex and Nifty50 indices falling over 1% each. The Sensex dropped more than 1,000 points, while the Nifty50 fell below 22,850. The selloff erased nearly Rs 6 lakh crore from the combined market capitalization of BSE-listed companies, bringing it down to around Rs 476 lakh crore.
All 30 Sensex stocks were trading in negative territory, with Bajaj Finance, Kotak Mahindra Bank, and HDFC Bank leading the decline. The weakness was not limited to large-cap stocks, as the Nifty Smallcap 100 and Nifty Midcap 100 indices also declined by more than 1%.
The primary reasons for the market's downturn were persistently high crude oil prices and a sharp increase in US bond yields. Tensions between Iran and the US escalated, with President Donald Trump rejecting Iran's proposal for a seven-day ceasefire and reopening the Strait of Hormuz. Iranian President Masoud Pezeshkian stated that Iran would remain firm and not back down in the face of the US and Israel.
This situation triggered a rise in crude prices, with the latest developments in the Middle East pushing the price of oil close to $107 per barrel.
Higher oil prices and soaring US bond yields added further pressure on equities. The yield on the benchmark US 10-year Treasury note reached a multi-year high, surpassing 5.2%. Meanwhile, the 30-year US bond yield crossed 5.5%, and the yield on two-year Treasury notes rose above 4.9%. These higher bond yields make debt markets more attractive for investors, potentially putting additional pressure on riskier assets like equities.
The Indian rupee also weakened by 14 paise to 95.89 against the US dollar. Forex traders were concerned about the currency breaching the psychologically important 96 level, facing pressure from elevated oil prices, higher US Treasury yields, and a stronger dollar. Foreign Institutional Investors (FIIs) continued to sell Indian equities, offloading shares worth a net Rs 3,694 crore. This negative FII flow trend became apparent earlier in the month, with total equity outflows reaching Rs 25,682 crore so far this month.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
