Why Sensex, Nifty are falling today: Rs 6 lakh crore wiped out; key reasons explained

Why Sensex, Nifty are falling today: Indian stock market benchmark indices opened sharply lower on Monday, tracking weakness in global markets as the escalating West Asia conflict triggered a fresh risk-off sentiment among investors. Rising crude oil prices, a record low rupee, persistent foreign investor selling, and fears of wider geopolitical escalation weighed heavily on Dalal Street.

The selloff erased more than Rs 6 lakh crore in investor wealth in early trade.

The BSE Sensex opened at 74,807.97 against its previous close of 75,237.99. At 9:15 AM, the index was down 833.01 points, or 1.11 per cent, at 74,404.98.

The NSE Nifty 50 opened at 23,482.20 compared to Friday’s close of 23,643.50. The benchmark index slipped 161.30 points, or 0.68 per cent, to 23,482.20 in opening trade.

At around 11:09 AM, the Sensex was trading at 74,670.87, down 567.12 points or 0.75 per cent, while the Nifty stood at 23,476.80, lower by 166.70 points or 0.71 per cent.

The total market capitalisation of BSE-listed companies dropped to around Rs 454 trillion from Rs 460 trillion in the previous session.

Oil prices surge amid West Asia tensions

Crude oil prices extended gains on Monday after hopes of a ceasefire in West Asia weakened further. Reports of an attack on a nuclear power facility in the UAE intensified concerns over supply disruptions.

Brent crude futures rose 1.3 per cent to $110.70 per barrel, while US West Texas Intermediate crude climbed 1.75 per cent to $107.26 per barrel.

The spike in oil prices is a major concern for India, which is the world’s third-largest crude oil importer. Higher crude prices could worsen inflationary pressures, increase the trade deficit, and put additional pressure on the rupee.

Rupee hits fresh record low

The rupee fell to a fresh all-time low against the US dollar in early trade on Monday.

The domestic currency weakened to 96.18 per dollar, surpassing its previous record low of 96.1350. The rupee declined around 0.2 per cent during the session.

The rupee has emerged as Asia’s worst-performing currency in 2026, falling 5.5 per cent since the West Asia conflict escalated on February 28.

Currency weakness also raised concerns over imported inflation and foreign fund outflows.

Trump’s Iran remarks deepen market worries

Investor sentiment remained fragile after comments from US President Donald Trump fuelled fears of further escalation in West Asia.

According to reports, Trump is expected to discuss military options related to Iran. In a post on Truth Social, he warned Iran to “get moving, fast,” and said “the clock is ticking.”

He also warned that there “won’t be anything left” if action was not taken soon, adding that “Time is of the essence.”

The remarks heightened concerns over a prolonged geopolitical conflict and potential disruptions to global energy supplies.

FII selling continues to pressure markets

Foreign institutional investors continued to reduce exposure to Indian equities amid rising global uncertainty.

Foreign Portfolio Investors (FPIs) have withdrawn Rs 27,048 crore from Indian equities so far this month. Total FPI outflows in 2026 have now reached Rs 2.2 lakh crore, exceeding the Rs 1.66 lakh crore withdrawn during the entire 2025, according to NSDL data.

FPIs remained net sellers in every month of 2026 except February.

They sold equities worth Rs 35,962 crore in January before turning net buyers in February with inflows of Rs 22,615 crore. However, selling intensified again in March, when they pulled out a record Rs 1.17 lakh crore. In April, net outflows stood at Rs 60,847 crore.

Global markets remain weak

Asian markets traded mostly lower on Monday amid growing geopolitical concerns and rising oil prices.

Japan’s Nikkei 225, Hong Kong’s Hang Seng, and China’s Shanghai Composite index were trading in the red, while South Korea’s Kospi showed some resilience.

US markets had also ended more than 1 per cent lower on Friday, reflecting weak global risk appetite.

Broad-based selling across sectors

The market decline remained broad-based, with most sectoral indices trading lower. IT was the only sector showing some resilience due to expectations that a weaker rupee may support export-oriented companies.

Nifty PSU Bank fell 2.08 per cent, while Nifty Realty declined 2.29 per cent. Nifty Consumer Durables dropped 2.5 per cent, and Nifty Metal slipped 1.8 per cent.

Broader markets witnessed sharper cuts. The Nifty Midcap100 index declined 1.3 per cent, while the Nifty Smallcap100 index fell 1.8 per cent.

Among Sensex stocks, Tata Steel emerged as the top loser, falling more than 4 per cent. Power Grid also declined nearly 4 per cent. Adani Ports, Maruti Suzuki, and Titan traded sharply lower.

IT stocks outperformed the broader market. Infosys gained 0.80 per cent, while Tech Mahindra traded marginally higher with a positive bias.