Investors lose ₹8.77 lakh crore as Sensex plunges over 1,100 points; Nifty slips below 23,000 - here’s what triggered the sell-off

It was a blue Monday for Dalal Street as Indian equities witnessed heavy selling pressure, with the Sensex plunging more than 1,100 points and the Nifty slipping below the crucial 23,000 mark. Selling pressure intensified as surging crude oil prices, geopolitical tensions and higher global bond yields weighed on market sentiment.

The BSE Sensex plunged 1,124 points, or 1.52%, to settle at 72,771.72, while the Nifty 50 tumbled 360 points, or 1.56%, to close at 22,780.25.

The sharp sell-off wiped out ₹8.77 lakh crore in investor wealth, with the total market capitalisation of BSE-listed companies falling to ₹474.47 lakh crore from ₹483.25 lakh crore at Friday’s close.

Broad-based selling across indices

The market saw broad-based selling, with the Nifty Midcap 100 index declining 1.63% to 59,914.20, while the Nifty Smallcap 100 index fell 1.85% to 19,351.10.

Volatility also picked up, with the India VIX rising to 13.69 from 12.54 in the previous session, reflecting heightened nervousness among investors amid the broader market sell-off.

The selling was also visible across the 30-share Sensex pack, with 29 stocks ending in negative territory, barring Infosys. L&T, Power Grid, HDFC Bank, HUL and Reliance Industries were among the biggest losers, declining 2.81%, 2.62%, 2.30%, 2.27% and 2.24%, respectively. SBI, ICICI Bank and Adani Ports also fell more than 1.9% each. Infosys was the lone gainer, rising 0.20%.

On the sectoral front, PSU banks, metals, realty, oil and gas, and financial services were among the worst-hit sectors. The Nifty PSU Bank index fell 3.24%, while the Nifty Realty and Nifty Metal indices declined 2.12% and 1.78%, respectively.

Why did the market trigger a sell-off today?

The sell-off was largely triggered by renewed geopolitical tensions, rising crude oil prices and higher US bond yields. Brent crude rose above $106 a barrel amid concerns over the Strait of Hormuz, raising worries over India’s import bill, inflation and the rupee.

Vinod Nair, Head of Research at Geojit Investments, said bears remained firmly in control as the market breached a key psychological support level amid deteriorating global macro conditions.

“The U.S. 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,” Nair said.

Higher US bond yields are also narrowing the India-US yield differential, potentially weighing on foreign fund flows and keeping investor sentiment cautious, he added.

Pranay Aggarwal, Director & CEO of Stoxkart, said Brent crude’s rise to around $107 a barrel, along with a weaker rupee and higher sovereign bond yields, had triggered a broader cross-asset sell-off.

The rupee weakened to around ₹95.95 per dollar, while the 10-year government bond yield moved to a two-year high, further adding to pressure on domestic equities.

Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said the sharp sell-off reflected a combination of global macro pressures rather than purely domestic weakness. “The sharp sell-off reflects a combination of global macro pressures rather than a purely domestic weakness. With Brent crude moving above $106, US 10-year yields near 5.2% and the rupee weakening towards ₹96 per dollar, concerns around inflation, import costs and emerging-market flows have intensified.”

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