India’s Sensex plunges 630 points as rupee weakens, Fed hawkishness outweighs oil dip

INDIA, 24 SEPTEMBER 2026 —

India’s benchmark Sensex fell 630 points (0.84%) to 74,198.14 in early trade, while the Nifty 50 dropped 207 points (0.88%) to 23,239.90, as the rupee weakened 14 paise to 95.87 against the US dollar—its lowest intraday level since February.

The rupee’s drop—14 paise in early trade after a 11-paise slide yesterday—reflected broader dollar strength, with traders citing Fed officials’ comments as justification for pricing in another rate increase. While Brent crude futures fell 0.9% to $102.13 per barrel and WTI eased 0.7% to $91.56, the oil price rebound failed to offset the currency’s pressure on Indian equities.

Iran’s offer to engage in diplomacy with the US, though conditional on rejecting "unfair pressure," did little to reassure markets already skittish over geopolitical risks.

All 30 Sensex stocks traded in the red except for Tech Mahindra (TECHM), which rose 0.8%, and Sun Pharma (SUNPHARMA), up 0.5%. The worst performers included Kotak Mahindra Bank (KOTAKBANK), down 1.5%, and IndiGo (INDIGO), which fell 2.1%—both reflecting sector-wide weakness in financials and consumer discretionary stocks. Bajaj Finserv (BAJAJFINSV), Axis Bank (AXISBANK), and Bajaj Finance (BAJFINANCE) also declined over 1%.

Regional contagion risks The sell-off in Indian equities mirrors broader Asian weakness, with Hong Kong’s Hang Seng Index down 0.51% and Singapore’s Straits Times Index off 0.13%—though Malaysian markets may remain more insulated due to domestic stability and Bank Negara Malaysia’s cautious monetary stance. The Nikkei 225 bucked the trend with a 1.36% gain, driven by domestic recovery hopes, while most other regional indices declined, including Thailand’s SET Composite (-0.39%) and Indonesia’s Jakarta Composite (-0.85%).

Contrast with yesterday’s rebound India’s indices had rebounded the prior session, with the Sensex rising 299 points (0.4%) to 74,828.25 and the Nifty up 0.5% to 23,446.80, supported by metals (+2.4%), realty (+1.2%), and FMCG stocks (+1.1%). However, IT (-0.8%) and media (-0.5%) underperformed, signaling persistent caution over global growth prospects. The BSE Midcap lost 0.27%, while the Smallcap index edged up 0.10%.

Market vulnerability The rupee’s decline—now near 96 against the dollar—remains a key vulnerability for Indian equities, particularly in interest-rate-sensitive sectors. While Iran’s diplomatic signals could ease oil price pressures, the Fed’s hawkish stance and persistent dollar strength may keep downward pressure on Asian risk assets. Traders will now monitor US inflation data and Fed commentary for further signals on rate hikes, as well as crude trends and the rupee’s trajectory.

For Malaysian investors, the broader Asian sell-off may test regional risk sentiment, though domestic factors—including Bank Negara’s policy stance and crude price movements—will remain the primary drivers of local market movements.

Related: India