Sensex Plunges 900 Points and Nifty Drops Below 22,900 as Crude Oil Surges and Global Headwinds Mount

Indian equity benchmark indices faced intense selling pressure in morning trade on Monday, September 28, dragged lower by surging crude oil prices, rising global bond yields, and persistent foreign capital outflows.

The 30-share BSE Sensex dropped by as much as 900.50 points, or 1.22%, sliding below the psychological 73,000 mark to trade at 72,995.24. Simultaneously, the broader NSE Nifty 50 fell 275.45 points, or 1.19%, to touch 22,865.05, slipping well below the 22,900 threshold. The sharp slump follows seven consecutive weekly declines for domestic equity markets.

The sell-off eroded nearly Rs 6 lakh crore of investor wealth, reducing the total market capitalisation of BSE-listed entities to approximately Rs 476 lakh crore. India VIX, the benchmark volatility gauge, spiked by nearly 13% to approach the 14 mark, highlighting growing unease among market participants.

Key Drivers Behind the Market Fall

Surging Crude Oil Prices Crude prices surged, with Brent crude futures topping $106 per barrel amid heightened geopolitical frictions involving the United States, Israel, and Iran. Continued uncertainty surrounding shipping traffic across the Strait of Hormuz after US President Donald Trump rejected a ceasefire proposal rattled energy markets. As the world’s third-largest crude importer, sustained oil price increases pose immediate risks to India’s import bill, currency stability, and corporate margins.

Surging Global Yields and FPI Outflows Elevated US Treasury yields, with the US 10-year yield hovering near 5.2%, strengthened the US dollar and dampened risk appetite across emerging markets. Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that high crude prices and sticky US yields serve as heavy headwinds, prompting Foreign Portfolio Investors (FPIs) to maintain a selling bias throughout September.

Pressure on the Indian Rupee The Indian rupee depreciated by 14 paise in early trading to touch 95.89 against the US dollar. Heavy dollar demand from oil importers alongside foreign fund outflows has placed sustained pressure on the domestic currency.

Sectoral Impact and Major Losers

Selling pressure was broad-based, with all 30 Sensex constituent stocks falling into the red during morning trade. Banking and non-banking financial companies led the decline:

• Bajaj Finance declined 1.59% to trade near ₹979.20.
• Kotak Mahindra Bank lost 1.59%, trading around ₹397.00.
• HDFC Bank dropped 1.45% to ₹725.10, dampening the heavyweight private banking space.
• Bajaj Finserv fell 1.37% to ₹1,744.80.
• Mahindra & Mahindra slipped 1.30% to ₹2,991.90.
• Hindustan Unilever declined 1.29% to ₹1,915.00.
• Larsen & Toubro decreased 1.25% to ₹3,830.40.
• Bharat Electronics (BEL) dropped 1.23% to ₹388.15.

Across the broader market, both the Nifty Midcap 100 and Nifty Smallcap 100 indices dropped over 1% each. Overall market breadth on the National Stock Exchange remained firmly negative, recording 2,259 declining stocks against only 759 advances.

Tags: BSE Sensex NSE Nifty 50 HDFC Bank Bajaj Finance Kotak Mahindra Bank Crude Oil