Dalal Street faced significant pressure on Monday afternoon as volatility and broad selling wiped out over Rs 6.4 lakh crore in investor wealth. The sharp decline reflected growing concerns among market participants amid unsettled global and domestic factors.
By 12:57 pm, the total market capitalisation of BSE-listed companies fell from Rs 421.62 lakh crore at the previous close to Rs 415.25 lakh crore. The benchmark indices mirrored this weakness, with the BSE Sensex dropping 1,098.02 points to 72,485.20 and the NSE Nifty50 falling 319.15 points to 22,500.45.
Markets opened sharply lower and despite some attempts at recovery, they . This showed a fragile market sentiment driven by multiple pressures.
Volatility indicators also pointed to nervousness. The India VIX, known as the market’s fear gauge, rose over 5% during the session, signalling increased uncertainty among investors.
Selling was broad-based, led by banking and financial stocks. Axis Bank slipped over 3.6%, while State Bank of India and Bajaj Finance declined by more than 3%, weighing heavily on the indices. Other major companies such as Bharti Airtel, Larsen & Toubro, Infosys and Kotak Mahindra Bank also traded lower, indicating weakness across sectors.
The broader market reflected a clear risk-off mood among investors, with widespread selling pressure. However, some sectors showed resilience. Oil and commodity-linked stocks like ONGC and Coal India gained between 1% and 2%, while Hindalco rose supported by higher global commodity prices.
The key factor behind the sell-off was the sharp rise in crude oil prices, which hovered around $115–116 per barrel amid escalating tensions in West Asia. As India imports most of its oil, higher prices increase the import bill, fuel inflation, and pressure corporate margins, all of which negatively affect equity markets.
Foreign institutional investors continued to reduce their exposure, adding to the selling pressure amid global uncertainty. Despite efforts to stabilise, the market tone remained weak, and with crude oil prices staying elevated and geopolitical risks ongoing, volatility is expected to persist in the near term.