Dalal Street’s attempt at a recovery lasted just one session. Benchmarks plunged on Monday, 28th September, to hit their lowest levels since early April, extending the longest weekly losing streak since 2020.
Nifty 50 closed at 22,780.25, down 360.25 points or 1.56% at 3:31 pm IST. The index opened at 23,064.90, well below its previous close of 23,140.50, made a morning high of 23,080.25 and then bled through the day to an intraday low of 22,762.20. The intraday chart was a textbook sell-on-rise – a sharp gap-down at open, a flat drift till noon, and another leg down after 2 pm.
BSE Sensex settled at 72,771.72, crashing 1,124.02 points or 1.52% at 3:32 pm IST. It opened at 73,734.83 versus previous close of 73,895.74, touched 73,740.85 at best and collapsed to 72,716.23 at the low – which is also its 52-week low. The 52-week high on the terminal reads 76,883.14, meaning the index has lost over 4,100 points from the top, while Nifty has corrected over 3,500 points from its 52-week high of 26,373.20 and is now just 600 points away from its 52-week low of 22,182.55.
Wealth destruction was swift. Combined market-cap of BSE-listed firms fell from Rs 482 lakh crore at open to Rs 477 lakh crore by 10:15 am – Rs 5 lakh crore gone in 70 minutes. India VIX spiked 13.5% to around 13.8, reflecting extreme fear. Breadth was negative across the board – Nifty Smallcap down 1.51%, Midcap down 1.41%, all 16 sectoral indices in red.
Why Did Markets Fall Today? 6 Factors Behind the Crash
- Trump Rejects Iran Peace Proposal: The biggest sentiment killer. Iran had proposed a peace plan at the UN General Assembly in New York last week via Qatari mediators to reopen the Strait of Hormuz and end fighting. US President Donald Trump rejected it on Saturday, though he told Axios on Sunday that more talks are expected this week. Tehran said diplomacy remains the only way.
- Brent Jumps Back To $106.5: Oil rebounded over 1% on Monday. Brent crude futures rose $1.32 or 1.27% to $105.64 at 0036 GMT and climbed to $106.5 by afternoon, some terminals quoting $107.75, up 3.29%. WTI was at $93.11, up 70 cents or 0.76%. Brent edged up 0.4% last week but had swung wildly on mixed signals.
- Hormuz Still Choked, Houthis Strike Again: Saudi-led coalition said it intercepted two ballistic missiles and two drones launched by Iran-backed Houthis towards Saudi Arabia early Saturday. ANZ noted, “Geopolitical risks remain elevated, as the Houthis and Iran continued their attacks on Saudi Arabia, leaving regional supply flows vulnerable.” Traffic through Hormuz is down from 18 million bpd to about 11 million bpd.
- Bond Yields Soar To 2004 Highs: Rising oil stoked inflation fears, pushing US 10-year Treasury yield above 5.2%, highest since 2004, while US 30-year hit 20-year highs. S&P 500 futures fell 0.5%, Nasdaq 100 futures down 1%, Dow down 0.4%. MSCI Asia Pacific down 0.9%, Emerging Markets down 1.1%.
- Rupee Under Pressure: USD/INR traded near 95.90-95.95, up 0.13% on the day, as foreign outflows and crude pressure mounted. RBI was seen intervening earlier in the week but rupee remains near 96.
- Relentless FII Selling: Foreign investors sold Rs 3,694 crore worth on Friday and Rs 5,027 crore on Thursday. DIIs bought Rs 2,838 crore on Friday and Rs 4,301 crore on Thursday, cushioning but not reversing the fall. GIFT Nifty signaled cautious start at 23,111 at 7:41 am versus Nifty close of 23,140.50 on Friday.
Corporate & Economy: Rs 31 Trillion Gone, Bond Deal Pulled, Banks Open
- Wealth Erosion Hits New High: Nearly 40% of Nifty stocks are now trading more than 20% below their 52-week highs, erasing over Rs 31 trillion in investor wealth during this correction, Business Standard data showed.
- SIDBI Pulls Rs 6,000 Crore Bond: Small Industries Development Bank of India withdrew its three-year Rs 6,000 crore bond issuance as hardening yields created unfavourable pricing for corporate debt, a sign of stress in credit markets.
- Bank Strike Deferred: In relief for customers, United Forum of Bank Unions deferred its three-day nationwide strike planned for September 28-30 after Indian Banks Association assured formation of a high-level committee to deliberate on five-day workweek and declaring remaining Saturdays as holidays. All public sector banks including SBI will function normally. SBI issued advisory confirming normal operations.
- NRI Deposits Surge Sixfold: RBI data shows NRI deposit flows surged to $36.2 billion between April-July, boosted by attractive interest differentials despite rupee volatility.
- Daybook – Stocks In News: Aerpace Industries allotted 1.5 crore convertible warrants to promoters to raise Rs 48.83 crore. Quality Power Electrical to acquire 100% of Winwin Speciality Insulators for Rs 272.34 crore. Neogen Chemicals got CRISIL outlook upgrade to Stable from Negative on Rs 880 crore facilities. Aditya Infotech raised Rs 1,500 crore via QIP at Rs 3,467. Persistent Systems outlined EUR 1.27 billion acquisition of Nagarro SE. Ola Electric board met today to consider capital raising.
Geopolitics & Crude: Why $106 Oil Is a Nightmare for India
India is the world’s third-largest crude importer, and today’s move hits directly.
Import Bill Math: Indian basket averaged $102.11 in September till date versus $90.19 in August, highest since June. Tuesday’s price was $108.91. Every $10 per barrel rise adds $13-14 billion to import bill. Average September price is up over 13% month-on-month.
Refining Margins Collapse: At September average, marketing margins are negative Rs 5 per litre on petrol and negative Rs 23 on diesel, LPG under-recovery at Rs 200 per cylinder per ICRA. Under-recoveries are Rs 8 per litre on petrol and Rs 9 on diesel. Despite that, retail prices on 28th remained unchanged – Delhi petrol Rs 94.77, diesel Rs 87.67, Mumbai petrol Rs 103.50, diesel Rs 90.03.
Diesel Rationing Begins: Private refiners Reliance, Jio-BP and Nayara Energy have reportedly capped diesel sales at pumps.
Supply Chain Rewiring: India cut Russian imports to 2.1 million bpd in August, down 16.5%, estimated 1.9 million bpd in September per Kpler, amid Graham Sanctioning Russia and Iran Act, 2026 that allows up to 100% tariffs on top Russian oil buyers. Reliance bought 1 million barrels from Kuwait Petroleum Corp after halting Russian barrels. ADNOC is now routing via Fujairah and Sohar outside Hormuz. Middle East oil exports rebounded 30% week-on-week to 27.2 million bpd on September 21 but still vulnerable.
US Diesel Export Ban Talk: ANZ warned refined products remain a pressure point, with record US diesel prices intensifying inflation risks and prompting debate over potential export curbs. Any curb would tighten supply outside US, pushing European prices higher.
What Next? 22,762 Is the Line to Watch
Technically, Nifty’s breakdown below 23,000 opens downside to 22,600, with immediate support at today’s low of 22,762.20 and resistance at 23,064 open gap. For Sensex, 72,716 is crucial – a close below would confirm fresh 52-week low breakdown.
PSU Bank, Metal, Realty and Private Bank were top drags today, down over 2%, while IT and Pharma were relatively resilient though still lower.
The message is clear – this market will remain hostage to two headlines: Hormuz and US yields. Until Trump and Iran reach a phased deal to reopen the waterway and Brent slips below $100, rallies will be sold and FIIs will remain sellers. For now, cash is king and defensives are the only shelter.
