Stock market crash: Sensex loses 1,124 points, Nifty settles below 22,800

Indian equity markets came under heavy selling pressure on Monday, with the Sensex plunging more than 1,100 points as rising crude oil prices, geopolitical uncertainty, higher global bond yields and continued foreign fund outflows weighed on investor sentiment.

The 30-share BSE Sensex tumbled 1,124.02 points, or 1.52 per cent, to close at 72,771.72, while the NSE Nifty50 fell 360.25 points, or 1.56 per cent, to settle at 22,780.25.

The sell-off was broad-based, with pressure extending across large-cap, mid-cap and small-cap stocks. Among Nifty constituents, Tata Motors Passenger Vehicles, Power Grid and Jio Financial Services were among the major laggards.

The broader market also weakened sharply. The Nifty MidCap 100 declined 1.63 per cent, while the Nifty SmallCap 100 ended 1.85 per cent lower.

A major concern for investors was the sharp rise in crude oil prices amid renewed uncertainty over the West Asia conflict. Brent crude futures climbed 2.2 per cent to $106.60 a barrel, while US West Texas Intermediate (WTI) crude rose 1.45 per cent to $93.76.

The increase in oil prices is particularly significant for India because of its dependence on crude imports. A sustained rise in energy costs can add to inflationary pressures and put pressure on the country's external balances.

Market sentiment was further hit by developments involving the US and Iran. US President Donald Trump rejected an Iranian proposal aimed at reopening the Strait of Hormuz and easing hostilities, while Tehran continued to maintain that diplomacy remained the way forward.

The geopolitical uncertainty also weighed on other Asian markets. South Korea's market fell nearly 2 per cent, Japan's Nikkei declined 0.10 per cent and Chinese equities dropped more than 1 per cent.

Rising global bond yields added another layer of pressure. The yield on the US two-year Treasury note rose five basis points to 4.90 per cent, while the benchmark 10-year yield increased four basis points to 5.20 per cent. Higher yields in developed markets can reduce the relative appeal of emerging-market assets such as Indian equities.

Foreign portfolio investors also continued to pull money out of Indian equities. NSDL data showed that FPIs had sold equities worth Rs 17,131 crore in September so far, taking their cumulative net selling for the year to around Rs 2.41 lakh crore.

The rupee also remained under pressure, trading around 96 to the US dollar as dollar strength and elevated crude prices added to currency-market concerns.

The sharp fall marked another difficult session for Indian equities, with investors closely watching crude prices, developments around the Strait of Hormuz, global bond yields and foreign fund flows for signs of further market pressure.