Domestic equities came under heavy selling pressure on September 28, extending the losses from the previous week as surging oil prices and rising bond yields, amid escalating tensions between Iran and the US, weighed on investor sentiment.
At 10:45 am, the BSE Sensex was down 997.68 points, or 1.35 per cent, at 72,898.06. The NSE Nifty 50 fell 313.70 points, or 1.36 per cent, to 22,826.80.
The sell-off extended beyond the benchmark indices, with the broader market also coming under pressure. The Nifty Midcap 100 and Nifty Smallcap 100 indices were down around 1.25 per cent and 1.32 per cent, respectively, at the same time.
The sharp sell-off erased Rs 6.90 lakh crore from BSE-listed companies’ market value, bringing the total market capitalisation to around Rs 476 lakh crore.
All sectoral indices were trading in the red. Nifty PSU Bank fell the most, down around 2.26 per cent, followed by Nifty Bank, which was down 1.77 per cent.
Nifty Financial Services and Nifty Private Bank also fell around 1.60-1.70 per cent. Nifty Realty, Nifty Auto, Nifty FMCG, Nifty Metal and Nifty Oil & Gas were also down more than 1 per cent.
Among the Nifty 50 stocks, Tata Consumer Products, Adani Enterprises, Hindustan Unilever, Bajaj Finance, HDFC Bank and Bharat Electronics were the top losers, each falling more than 2 per cent.
As many as 48 of the 50 Nifty stocks were trading in the red. Dr Reddy’s Laboratories and Coal India were the only gainers, rising 1.30 per cent and 0.28 per cent, respectively.
Why Is Stock Market Falling Today
Here are the key reasons why stock market went deep into the red on September 28.
US-Iran Peace Talks Stalemate
Tensions between the US and Iran have increased after Washington rejected Tehran’s proposal for a seven-day ceasefire. Iran made the proposal conditional on reopening the Strait of Hormuz and restarting nuclear talks.
Iranian Foreign Minister Seyyed Abbas Araghchi said Tehran was open to diplomacy but warned that it was prepared for an “apocalyptic war” if the US attacked again. Iran has also sought the release of its frozen assets and the ability to sell oil as part of any settlement.
US President Donald Trump, meanwhile, said further military action remained possible and reiterated that Iran must not be allowed to develop nuclear weapons.
The stalemate over peace talks have added to concerns over inflation as crude oil prices remain elevated. Brent crude futures were trading above $107.50 a barrel, up 3.31 per cent, while West Texas Intermediate (WTI) crude was above $94.50 a barrel, up around 2 per cent from the previous close.
This is a developing story... Stay tuned!
