Today’s stock market crash (AI image)
Stock Market Crash Today: Indian equity indices Nifty50 and BSE Sensex witnessed sharp selling on Monday, with both indices collapsing more than 1% as bearish sentiment tightened its grip on Dalal Street.
Rising global bond yields, the rupee hitting all-time lows, and other macro concerns have added to the pressure on investors.The Sensex fell over 1,000 points to fall below the 74,300 level, while the Nifty 50 fell over 300 points to trade below the 23,350 level. The sharp decline wiped out nearly Rs 7 lakh crore from the total market capitalization of companies listed on the BSE, bringing it down to around Rs 454 crore.Market volatility also rose sharply, with the India VIX index rising over 5 per cent to hover around 19.78.
The weakness extended across broader markets as well, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling more than 1 per cent each.
Why did the stock market fall today? The most important reasons
Trump issues a new warning to Iran and says the clock is tickingUS President Donald Trump has escalated geopolitical tensions by warning that time is running out as negotiations with Iran over uranium stockpiles, sanctions relief and reparations linked to the conflict continue to falter.
In a post on Truth Social, Trump urged Iran to “move fast,” while warning that “there will be nothing left of them” and stressing that “time is of the essence.” His comments come amid growing instability in the Middle East, where the ceasefire situation continues to weaken.At the same time, tensions rose in the Gulf region after a drone strike caused a fire at a nuclear power plant in the UAE, while Saudi Arabia said it had intercepted three drones.
The UAE authorities stated that they were investigating the source of the attack, and stressed that the state reserves the right to respond to what it described as “terrorist attacks.”Bond yields have reached historic highsBond yields in major economies rose to unprecedented levels, as ongoing tensions in the Middle East intensified concerns about inflation and financial stability. The yield on 10-year US Treasury bonds rose to 4.632 percent, hitting its highest level since February 2025.Meanwhile, the yield on 30-year Treasury bonds jumped to 5.156 percent. The two-year bond yield, which is closely linked to expectations surrounding US Federal Reserve policy, rose to 4.101 percent. This rise came in the wake of a widespread sell-off in global debt markets, which pushed bond prices down and yields up sharply.Japan also saw a sharp rise in bond yields. The yield on the country’s 30-year government bonds touched a record level of 4.170 percent, while the yield on 10-year bonds rose to 2.800 percent, its highest level since October 1996.
In general, higher bond yields make fixed income instruments more attractive compared to stocks, which often results in weaker equity markets.Rupee slips to new record highThe rupee fell to an all-time low of 96.18 against the US dollar on Monday, surpassing its all-time low of 96.1350. So far in 2026, the Indian currency has emerged as the weakest performer in Asia and has fallen by 5.5 percent since the start of the Iran-US conflict on February 28.This also marked the fifth consecutive trading session in which the rupee hit a new record low. Rising crude oil prices have pushed bond yields to historic highs, hurting investor sentiment and dampening appetite for risky assets.“Market participants remain cautious amid concerns that higher crude oil prices may persist for a longer period despite government measures to control volatility. The near-term rupee range is expected to be between 95.55-96.25,” said Jatin Trivedi, Vice President Research Analyst, Commodities and Currencies at LKP Securities.Oil jumps above $110 a barrelCrude oil prices rose above $110 per barrel again after new statements by US President Donald Trump raised fears of further escalation in the conflict-ridden Middle East region.Brent crude advanced about 2 percent to trade around $111 a barrel, while West Texas Intermediate crude rose more than 2 percent to exceed $108 a barrel during morning trading on Monday.Global markets are witnessing sharp sellingRenewed geopolitical concerns led to a widespread decline in global stock markets.
In Asia, Japan’s Nikkei fell about 1 percent, while Hong Kong’s Hang Seng fell more than 1 percent. China’s Shanghai Composite Index traded slightly lower, while South Korea’s Kospi posted slight gains.On Wall Street, the Nasdaq and S&P 500 were already down as much as 1.5 percent on Friday. Dow Jones futures also fell nearly 1 percent, indicating a weak open for US markets later in the day.European stocks also closed sharply lower on Friday, with the German DAX, the French CAC and the British FTSE all declining by about 2 percent.(Disclaimer: Recommendations, opinions regarding stock market, other asset classes or personal finance management tips provided by experts are their own. These opinions do not represent the views of The Times Of India.)
