Indian equity benchmarks witnessed a sharp selloff on Monday, with both BSE Sensex crashing over 1,000 points, or 1.18%, to 74,349.02 at 9:46 am, opening sharply lower at 74,807.97 against the previous close of 75,237.99. The NSE Nifty also traded under pressure, falling 274.50 points, or 1.16%, to 23,369, opening at 23,482.20 against the previous close of 23,643.50. The steep decline erased nearly ₹7 lakh crore from the total market capitalisation of BSE-listed companies, reducing it to around ₹454 lakh crore. Market volatility also surged sharply, with India VIX climbing over 5% to hover near 19.92. As per Choice Broking, the selloff erased approximately ₹6 lakh crore in investor wealth due to a sharp 'risk-off' shift in global sentiment.
US President Donald Trump issued fresh threats against Iran, stating 'the clock is ticking' as escalating geopolitical tensions continue to drive market volatility. According to Stock Bull Updates, this latest development has intensified fears of further conflict in the Middle East region, directly contributing to the sharp selloff in Indian equity markets. The escalation comes after previous warnings from the US to Iran, which have propelled Brent crude prices upward toward $112 per barrel. This broad market selloff is primarily triggered by escalating geopolitical tensions in West Asia and strict warnings issued from the US to Iran, creating a risk-off environment that has weighed heavily on global markets.
Bond yields across major economies surged to unprecedented levels as persistent Middle East tensions intensified concerns around inflation and fiscal stability. As reported by The Times of India, the yield on the benchmark US 10-year Treasury note climbed to 4.632 per cent, marking its highest level since February 2025. The 30-year Treasury yield jumped to 5.156 per cent, while the yield on the 2-year note advanced to 4.101 per cent. Japan also witnessed a steep rise in bond yields, with the yield on the country's 30-year government bond touching a record high of 4.170 per cent, while the 10-year yield rose to 2.800 per cent, its highest level since October 1996. According to Mudrex, Bitcoin ETFs ended a six-week inflow streak, recording nearly $1 billion in net outflows, with concerns around potential oil supply disruptions and rising inflation strengthening the U.S. Dollar Index to 101.
The rupee fell to a fresh record low of 96.20 against the US dollar on Monday, surpassing its previous lifetime low of 96.1350, according to The Times of India. This marked the fifth straight trading session in which the rupee touched a fresh record low. So far in 2026, the Indian currency has emerged as the weakest performer in Asia and has declined 5.5 per cent since the Iran-US conflict began on February 28. Elevated crude oil prices have pushed bond yields to historic highs, hurting investor sentiment and weakening appetite for risk assets. The Dollar Index held steady at 99.31, with USD/INR higher at 96.22, as reported by Mudrex.
Crude oil prices surged past the $110-per-barrel mark once again after fresh remarks from US President Donald Trump raised fears of a further escalation in the conflict-hit Middle East region. As reported by The Times of India, Brent crude advanced nearly 2 per cent to trade around $111 per barrel, while WTI crude gained more than 2 per cent to move above $108 per barrel during Monday morning trade. According to Mudrex, Brent Crude jumped 1.69% to $111.10, while Crude Oil rose 2.03% to $107.55. The spike in oil prices has contributed significantly to the broader market weakness and investor caution, with this broad market selloff primarily triggered by escalating geopolitical tensions in West Asia and strict warnings issued from the US to Iran, which have propelled Brent crude prices upward toward $112 per barrel. This steep rise in energy costs poses significant inflationary and fiscal risks for India.
In early trade, markets faced broad-based selling with only Infosys (+1.03%), Bharti Airtel (+0.44%), and Tech Mahindra (+0.16%) closing higher, while Tata Steel (-4.66%), Power Grid (-3.96%), Adani Ports (-2.63%), Trent (-2.56%), and SBI (-2.49%) led the decline as financials, metals, auto, and power stocks weighed heavily. As per Choice Broking, Nifty Realty, PSU Bank, Oil & Gas, and Metal indices were the top laggards, while selective buying was seen in Media, IT, and FMCG stocks. Other sectors ended mixed, reflecting caution among investors. GIFT Nifty fell 1.38% to 23,386, indicating weak opening cues for domestic indices. Technical analysts advise caution against initiating fresh long positions until clear market support structures stabilise. The near-term outlook remains cautious to negative, as weak global cues, rising geopolitical tensions, and elevated crude oil prices continue to weigh on overall market sentiment, with traders likely to remain focused on global developments and volatility trends.
