Sensex crashes over 1,100 points, investors lose Rs 6 lakh crore: Why are markets falling?

At 10:46 am, the Sensex was down by 1010.84 points, or 1.37%, at 72,884.90, while the Nifty 50 fell 315.75 points, or 1.36%, to 22,842.75.

In Short

• Sensex fell over 1,100 points, Nifty below 22,800 on Monday
• Rising crude oil prices hit markets, Brent crude above $107
• Financial stocks declined amid insurance commission changes

Dalal Street came under heavy selling pressure on Monday, with benchmark indices falling more than 1.5% in afternoon trade as investors dumped stocks across sectors.

At around 2:44 pm, the BSE Sensex was down 1,148.32 points, or 1.55%, at 72,747.42. The NSE Nifty50 fell 361.30 points, or 1.56%, to 22,779.20, after touching an intraday low of 22,762.20.

The selloff was broad-based, with weakness visible across banks, financial services, energy, autos, infrastructure and consumer stocks.

On the Sensex, all 30 constituents were trading in the red. Adani Ports was the biggest loser, down 2.51%, followed by State Bank of India at 2.38% and Larsen & Toubro at 2.34%.

HDFC Bank, Hindustan Unilever and Reliance Industries were each down 2.26%, while Power Grid fell 2.19% and ICICI Bank declined 1.91%.

The Nifty data shows a similar pattern among its larger constituents. Adani Enterprises was down 3.37%, Jio Financial Services fell 3.05%, Adani Ports declined 2.71% and Bajaj Auto dropped 2.57%. HDFC Bank fell 2.28%, while Reliance Industries declined 2.27%.

Banking stocks were under particular pressure. SBI was down 2.40%, HDFC Bank 2.28% and ICICI Bank 2.01% in the Nifty data.

The decline was not confined to heavyweight stocks. Mahindra & Mahindra fell 1.67%, Eicher Motors 1.90%, Trent 1.89% and Tata Consumer Products 2.55%.

There were very few pockets of resilience. Dr Reddy's Laboratories was up 1.51%, making it the standout gainer in the Nifty basket. Infosys was nearly flat, gaining 0.02%.

WHAT IS DRIVING THE SELL-OFF?

Crude oil prices, geopolitical uncertainty and continued foreign investor selling remain the key concerns for markets.

Brent crude has moved above $106 a barrel amid uncertainty over developments in West Asia and the future of the Strait of Hormuz. For India, a sustained rise in oil prices can put pressure on the import bill, the rupee, inflation and corporate profitability.

Foreign portfolio outflows have added to the pressure, while global bond yields have also remained elevated.

The latest fall comes after both the Sensex and Nifty ended lower for a seventh consecutive week on Friday, extending a prolonged period of weakness in Indian equities.

The market's breadth on Monday is particularly notable. With all 30 Sensex stocks in the red and the Nifty trading close to its day's low, the decline points to a broad risk-off move rather than weakness concentrated in a few index heavyweights.

Investors will now watch the final hour of trade closely, particularly whether the Nifty can recover above 22,800 before the market closes.

- Ends