Stock market crash today: Nifty50 and
BSE Sensex crashed in opening trade on Monday, with benchmark indices extending losses as weak global cues, relentless foreign investor selling and rising geopolitical concerns dented market sentiment.
The broad sell-off erased more than Rs 5 lakh crore from investor wealth, bringing the combined market capitalisation of BSE-listed companies down to around Rs 456 lakh crore.
Selling was widespread across the market. Every stock in the Sensex basket traded in negative territory. The weakness was equally visible beyond the benchmark indices. The Nifty Midcap 100 and Nifty Smallcap 100 both lost more than 1%, reflecting a broad risk-off mood among investors.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “There are strong headwinds for the market as trading begins for the week. The sharp cut of 4.18% in Nasdaq last Friday has rattled global markets with tech dominated South Korea and Taiwan facing a big sell-off. The escalation of conflict in West Asia, with Iran firing missiles at Israel in retaliation to Israel’s aggression in Lebanon, has hardened crude prices. Brent has moved above $96. The jobs data from the US is good, and therefore, the Fed will not cut rates as President Trump wants. The rates are likely to be on hold for some time.
“It is important to note that the sell-off in the US on Friday was a tech-led sell off. This can trigger a rotation from AI trade to non-AI trade which can be beneficial for India. Rupee appreciating to 94.94 level from the recent low of 96.96 is likely to deter the FIIs from sustained selling in India. GDP growth for FY26 coming at 7.7% and the better-than-expected Q4 results can provide fundamental support to the market,” he said.
Why is stock market down today?
Fresh escalation in Middle EastGeopolitical tensions in West Asia intensified further as military activity between Israel and Iran continued.
Israel reportedly targeted military installations in western and central Iran after Tehran launched multiple missiles towards Israeli locations on Sunday. The latest developments came despite US President Donald Trump's recent assertion that a broader peace agreement remains achievable and reports suggesting he had urged Israeli Prime Minister Benjamin Netanyahu to avoid additional military action.
Local media reported explosions in Tehran, Tabriz and Isfahan, highlighting the fragile nature of the current ceasefire situation and fuelling concerns that the conflict could widen further.
Global markets reel under heavy sellingA sharp wave of selling swept through global equity markets on Monday, with technology stocks bearing the brunt of the pressure. South Korea's Kospi plunged 9% in early trade, triggering a 20-minute circuit breaker. The benchmark index has now retreated roughly 14% from the record levels it touched only last week.
The weakness was visible across Asia. Japan's Nikkei dropped about 4%, while Hong Kong's Hang Seng and China's Shanghai Composite each declined more than 1%.
The selloff followed a bruising session on Wall Street on Friday. The Nasdaq recorded its steepest one-day fall since April 2025, sinking more than 4% as investors reassessed expectations for interest rates and growth.
Crude oil prices jumpEnergy markets reacted sharply to the latest escalation in the region. Brent crude futures climbed about 4% to trade close to $97 a barrel, while US benchmark WTI crude gained more than 3.5%, approaching the $94-per-barrel mark.
The surge reflects growing fears over the continued disruption of the Strait of Hormuz, a strategically important maritime corridor linking the Persian Gulf and the Gulf of Oman. More than one-fifth of the world's daily oil and gas supplies pass through this narrow 33-kilometre-wide route, making any threat to its operations a major concern for global energy markets.
Fresh concerns over a possible Fed rate hikeInvestor anxiety was further fuelled by stronger-than-expected employment data from the United States. Official figures showed employers added 1,72,000 jobs in May, significantly higher than economists' forecast of around 80,000.
While robust hiring is generally viewed as a sign of economic strength, it can also complicate the inflation outlook.
For Indian markets, such developments carry broader implications. Expectations of higher US interest rates often raise concerns that the Reserve Bank of India could eventually face similar pressures.
Rupee weakens against the dollarThe rupee slipped 17 paise in early trade to 95.35 against the US dollar, giving up some of the gains recorded in the previous session.
The domestic currency had strengthened sharply on Friday after the Reserve Bank of India left the repo rate unchanged at 5.25% and unveiled several initiatives aimed at attracting foreign capital and improving liquidity in the foreign exchange market.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.
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