Mumbai, September 28, 2026 (Yes Punjab News)
Indian equity markets witnessed a sharp sell-off on Monday, with the Sensex plunging 1,124.02 points and the Nifty declining 360.25 points as escalating tensions in West Asia, rising crude oil prices, surging global bond yields and persistent foreign fund outflows weighed on investor sentiment.
The BSE Sensex tumbled 1.52 per cent to close at 72,771.72, while the NSE Nifty dropped 1.56 per cent to settle at 22,780.25. Selling pressure was widespread, affecting large-cap, mid-cap and small-cap stocks.
Among the Nifty constituents, Tata Motors Passenger Vehicles, Power Grid and Jio Financial Services emerged as the biggest laggards. The broader market also remained under pressure, with the Nifty MidCap 100 declining 1.63 per cent and the Nifty SmallCap 100 falling 1.85 per cent.
Investor concerns intensified amid fears that the ongoing conflict in West Asia could disrupt global energy supplies and increase inflationary pressures. Market sentiment was further affected after US President Donald Trump rejected an Iranian proposal aimed at reopening the Strait of Hormuz and easing hostilities. Iran, meanwhile, maintained that diplomacy remained the only solution to its conflict with the United States and Israel.
The geopolitical uncertainty also affected Asian markets, with South Korea’s benchmark falling nearly 2 per cent, Japan’s Nikkei declining 0.10 per cent and Chinese equities losing more than 1 per cent.
Rising crude oil prices added to the pressure on Indian equities. Brent crude futures climbed 2.2 per cent to $106.60 per barrel, while US West Texas Intermediate (WTI) crude advanced 1.45 per cent to $93.76 per barrel.
Higher oil prices pose a significant concern for India because of its dependence on crude imports, raising the risk of increased inflation and pressure on the country’s economic outlook.
Global bond markets also witnessed a sell-off as investors reassessed inflation risks. The yield on rate-sensitive US two-year Treasury notes rose five basis points to 4.90 per cent, while the benchmark 10-year Treasury yield increased four basis points to 5.20 per cent. Higher yields in developed economies can reduce the attractiveness of emerging-market assets, including Indian equities.
Foreign portfolio investor (FPI) outflows further weakened domestic market sentiment. After remaining net buyers in July and August, overseas investors turned net sellers in September. According to NSDL data, FPIs have sold Indian equities worth Rs 17,131 crore so far this month, taking their total net selling for the year to Rs 2.41 trillion.
The Indian rupee also remained under pressure, weakening 0.19 per cent to 96.00 against the US dollar as a stronger dollar and elevated crude oil prices weighed on the currency.
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