Stories
Sensex Plunges Over 1,000 Points: 5 Key Reasons Behind Today's Market Sell-off
- •Indian equity benchmarks Sensex and Nifty closed sharply lower on Monday, with Sensex falling 1,124 points and Nifty declining 360 points to its lowest since April 2.
- •Rising crude oil prices continued to impact the market, leading to seven Nifty stocks hitting 52-week lows.
- •A broad-based sell-off saw 47 of 50 Nifty stocks ending lower, with BSE-listed companies losing ‘8 lakh crore in market capitalization.
- •The Nifty Bank and Nifty PSU Bank indices were major underperformers, with all sectoral indices closing in the red and the volatility index jumping 13%.
- •NSE and BSE declined following reports of SEBI considering a panel on self-listing, contributing to the overall market fall.
Key Questions Answered
The market fall was driven by rising crude oil prices, broad-based selling across stocks, sharp slides in Nifty Bank and PSU banks, all sectoral indices closing in the red, and NSE and BSE declining following reports of a potential SEBI panel on self-listing. Additionally, geopolitical tensions involving the US and Iran and foreign fund outflows added heavy pressure.
On Monday, September 28, the Sensex dropped 1,124 points to close at 72,772, while the Nifty declined 360 points to 22,780, marking its lowest level since April 2. All four frontline indices finished nearly 2% lower, and BSE-listed companies lost ₹8 lakh crore in market capitalisation.
Despite the sharp market downturn, Dr Reddy's Laboratories, Infosys, and HDFC Life were the only three Nifty stocks that managed to close in the green. Air-conditioner companies also saw gains due to expectations of price hikes, with Voltas rising by 2%.
