Stock market crash today: Nifty50 and BSE Sensex, the Indian equity benchmarks, extended their decline on Tuesday, crashing over 0.8% after the rout on Monday. Investors remained cautious as higher crude oil prices, rising bond yields and several other concerns continued to weigh on sentiment.At around 10:25 AM, Nifty50 was trading at 22,586.60, down 194 points or 0.85%. BSE Sensex was at 72,138.99, down 633 points or 0.87%. The sharp fall erased nearly Rs 4 lakh crore from the combined market capitalisation of companies listed on the BSE within minutes of the market opening, taking the total down to Rs 474 lakh crore.Bajaj Finance was among the biggest losers on the Sensex, with its shares falling around 2%. The Nifty Midcap 100 and Nifty Smallcap 100 both declined around 0.8%.Dalal Street was also tracking the broader weakness across global markets. US stocks ended the previous session sharply lower, with the tech-heavy Nasdaq falling more than 0.9% and the S&P 500 declining around 0.8%.Asian markets were similarly under pressure. Japan’s Nikkei dropped more than 1%, while Hong Kong’s Hang Seng, South Korea’s Kospi and several other regional markets declined by nearly 1% each.
Why is stock market crashing today?
US-Iran peace deal seems distantUS President Donald Trump has denied reports that he offered Iran sanctions relief and access to frozen Iranian funds in return for concessions related to its nuclear programme.At the same time, US and Iranian officials held separate discussions with mediators on Monday as efforts were renewed to seek an end to the seven-month war, according to officials from both countries.Oil prices riseThe continuing developments in the oil-rich Middle East have kept investors nervous, with the latest moves in crude prices adding to the pressure on global markets. Brent crude futures climbed above $107 per barrel, while WTI crude futures moved past $94 per barrel.Bond yields surgeBond yields continued their upward move, touching fresh multi-year highs and adding further pressure on equity markets.Rising bond yields generally make debt markets more appealing to investors, which can increase pressure on riskier assets such as equities.Rupee tumbles to two-month lowThe rupee weakened past the 96-per-dollar mark to hit a two-month low as the continued rise in oil prices heightened concerns over the impact on the net energy-importing economy. The Indian currency fell to 96.1450 against the US dollar.FII outflows intensifyForeign investors remained net sellers of Indian equities on Monday, offloading shares worth more than Rs 5,353 crore, according to provisional NSE data. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the shift in FPI flows from positive to negative after inflows in July and August had become visible at the beginning of the month.According to the analyst, the selling trend has continued, with total equity outflows through exchanges reaching Rs 25,682 crore this month through last week. FIIs have been net sellers in 15 of the 19 trading sessions so far this month.Nifty monthly expiryTuesday’s trading session also coincides with the monthly expiry of Nifty’s F&O contracts. Monthly expiry sessions are generally associated with increased market volatility.RBI rate hike expectationsThe Reserve Bank of India is scheduled to hold its Monetary Policy Committee (MPC) meeting next week, from October 5 to October 7. The market is pricing in a rate hike as part of a broader global tightening cycle. This follows the US Federal Reserve’s rate increase earlier this month, its first hike since 2023.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)