Dalal Street Bleeds as Sensex Plunges Over 1,000 Points, Rs. 8.92 Lakh Crore Wiped Off

MUMBAI: Indian equity markets experienced severe sell-offs on Monday, with the BSE Sensex tumbling 1,090 points to close near 72,805, while the NSE Nifty 50 slid 352 points to settle at 22,788. The sharp intra-day decline wiped out nearly ₹8.92 lakh crore in investor wealth within hours, dragging the combined market capitalization of BSE-listed companies down to around ₹474 lakh crore and triggering widespread risk-averse selling across major sectors.

Market breadth remained heavily negative as all 30 Sensex constituents ended in the red, with financial and banking heavyweights—including HDFC Bank, Kotak Mahindra Bank, and Bajaj Finance—leading the downward spiral. Broader markets were equally affected as both the Nifty Midcap 100 and Smallcap 100 indices recorded losses exceeding 1%.

The bloodbath was primarily driven by worsening geopolitical developments after US President Donald Trump rejected a peace proposal from Iran to resolve ongoing regional conflicts and reopen the critical Strait of Hormuz route. The standoff pushed international crude oil prices close to $107 per barrel, rekindling global inflation fears and escalating concerns over higher energy import costs for oil-dependent economies like India.

Compounding the domestic pressure, US Treasury yields climbed to fresh multi-year highs above 5.2%, spurring continued equity liquidations by foreign institutional investors (FIIs) and dragging the Indian rupee down toward 95.89 against the US dollar. Market observers expect short-term volatility to persist as market participants closely monitor crude price fluctuations, foreign fund flows, and upcoming diplomatic cues from the Middle East.