Sensex Crashes 1,248 Points, Nifty Below 23,100

The Sensex plunged 1,247.71 points, or 1.67 per cent, to close at 73,580.54, while the Nifty fell 383.70 points, or 1.64 per cent, to settle at 23,063.10. Both indices recorded their worst single-day performance since July 8. The sell-off also eroded around Rs 3.54 lakh crore of investor wealth during the session.

The Nifty’s decline below the 23,100 mark was particularly significant. The index breached its September 16 low of 23,116 after having recovered towards the 23,500 level earlier this week. The sharp reversal highlighted the fragile sentiment in the market and triggered further selling across several sectors.

Five Reasons Behind Thursday’s Market Crash

1. US Bond Yields Surge: The US 10-year Treasury yield climbed to 5.13 per cent, its highest since July 2007, raising concerns over capital outflows from emerging markets such as India.
2. Crude Oil Prices Rise: Brent crude surged towards USD 106 a barrel amid concerns over a wider Iran-US conflict, raising worries about inflation and India’s import costs.
3. US Dollar Strengthens: The dollar index crossed 101 to hit a two-month high, putting pressure on emerging-market currencies and adding to concerns over the Indian rupee.
4. Banking Stocks Slide: The Nifty Bank index fell more than 1,000 points, with Axis Bank, IndusInd Bank, IDFC First Bank and AU Small Finance Bank among the major decliners.
5. Insurance Sell-Off And Expiry Volatility: Insurance stocks plunged following an IRDAI draft paper on distribution norms, while monthly expiry and profit booking at higher levels intensified market volatility.