₹7 Lakh Crore Wiped Out from Stock Market! Sensex Crashes Amid Oil Shock, Iran Fears And Weak Rupee

Indian equity markets faced heavy selling pressure on Monday as risk sentiment weakened sharply across the globe. The BSE Sensex plunged over 1,000 points to slip below 74,300, while the Nifty 50 lost more than 300 points and moved under 23,350, dragging overall market wealth sharply lower.

The slump wiped out close to Rs 7 lakh crore in market capitalisation from BSE-listed firms, pulling the figure down to about Rs 454 lakh crore. Volatility also spiked, with India VIX jumping over 5 per cent to hover near 19.78, signalling heightened nervousness among traders and investors.

Global cues drive stock market crash today across equities

The selloff did not spare broader indices. Both the Nifty Midcap 100 and Nifty Smallcap 100 slipped more than 1 per cent each, showing that weakness spread beyond frontline stocks. Global risk-off mood, a sliding rupee and surging bond yields together weighed on portfolios and discouraged fresh buying interest.

Sentiment took a further hit from a broad decline in overseas markets. In Asia, Japan's Nikkei dropped about 1 per cent, while Hong Kong's Hang Seng index lost more than 1 per cent. China's Shanghai Composite traded slightly lower, although South Korea's Kospi managed modest gains during the session.

Geopolitical tensions and oil prices deepen stock market crash today

Wall Street had already signalled caution at the end of last week. On Friday, the Nasdaq and S&P 500 indices each shed up to 1.5 per cent, and Dow Jones futures on Monday were down nearly 1 per cent, pointing to a subdued start for US trade later in the day.

Geopolitical concerns in the Middle East remained a major overhang. US President Donald Trump warned that talks with Iran over uranium stockpiles, sanctions relief and conflict-linked compensation were stalling. In a Truth Social post, Trump urged Iran to "get moving, FAST," warned that "there won't be anything left of them" and stressed that "TIME IS OF THE ESSENCE."

Oil surge and regional risks pressure stock market crash today

Fresh tension in the Gulf region added to jitters. A drone strike caused a fire at a nuclear power plant in the UAE, while Saudi Arabia reported intercepting three drones. Authorities in the UAE said they were probing the source of the attack and stated that the country reserved the right to respond to what it called "terrorist attacks."

Crude oil moved higher once more on fears that conflict in the Middle East could intensify. Brent crude futures gained nearly 2 per cent to trade around $111 per barrel, while WTI crude rose more than 2 per cent to move above $108 per barrel during Monday morning deals, reviving worries over imported inflation.

Bond yields spike and rupee slump feed stock market crash today

Bond yields surged across major economies, stoking concern over inflation and fiscal pressures. The yield on the benchmark US 10-year Treasury climbed to 4.632 per cent, its highest level since February 2025. The 30-year Treasury yield advanced to 5.156 per cent, while the 2-year yield, closely watched for Federal Reserve signals, reached 4.101 per cent.

Japan also saw a sharp move in its debt market. The 30-year Japanese government bond yield touched a record 4.170 per cent, while the 10-year yield climbed to 2.800 per cent, the highest since October 1996. Rising yields tend to make fixed-income assets more appealing than equities, often pressuring stock valuations.

Currency weakness adds to stock market crash today concerns

The rupee weakened to a new record low of 96.18 against the US dollar on Monday, breaching the earlier lifetime trough of 96.1350. The currency has become Asia's worst performer so far in 2026, dropping 5.5 per cent since the Iran-US conflict started on February 28.

This was the fifth straight session in which the rupee set a fresh record low, reflecting persistent pressure from elevated oil prices and risk aversion. "Market participants remain cautious amid fears that elevated crude prices may persist for a longer duration despite government measures to control volatility. Near-term rupee range is expected between 95.55–96.25," said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.

Market watchers noted that the combination of higher global yields, strong crude prices, geopolitical unease and a sliding rupee created a difficult backdrop for Indian equities. While some traders looked for potential value after the correction, many participants preferred to stay cautious until there is more clarity on global risks and currency stability.

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