Why did market crash today? Sensex plummets 1,248 points, Nifty ends below 23,100. 5 factors behind today's D-Street bloodbath
Indian equity benchmark indices Sensex and Nifty fell nearly 1% on Thursday, erasing over Rs 4 lakh crore in BSE market capitalisation. Surging US 10-year Treasury bond yields to 19-year highs, ...
Source: The Economic Times · The Times of India · BusinessLine · September 24, 2026 at 2:02 PM · AI-assisted report
Single-sourceKUALA LUMPUR, 24 SEPTEMBER 2026 —
The Indian stock market crashed on Thursday, with Sensex and Nifty falling more than 1.6% each as bond yields surged to 19-year highs, along with other factors that spooked investors.Sensex plummeted around 1,248 points to close at 73,581, while Nifty 50 dropped 384 points to end the session at 23,063.
Market Impact
Broader markets crashed further, with Nifty Midcap 100 plunging more than 2% and Nifty Smallcap 100 index dropping 1.5%Bajaj Finance shares tanked more than 5% to lead losses on Sensex, while Axis Bank and Bajaj Finserv shares fell 4-5%. IndiGo and Trent shares dropped nearly 3% each, while M&M, Reliance Industries, Asian Paints, Bharti Airtel and L&T shares fell more than 2% each.India VIX, which measures market volatility, soared over 22%.
All sectoral indices ended in the deep red, with the Nifty Financial Services index slipping over 4%. The overall market breadth turned sharply negative, with NSE seeing 2,587 declines against 943 advances, while 99 stocks remained unchanged.Read More: Click Here For Live Market UpdatesHere are the key factors behind today's stock market crash:1.
Bond yields soar to 19-year highUS 10-year Treasury bond yields surged to their highest level since 2007, after data showed US business activity racing to a more-than-five-year high in September. Interest rate-sensitive 2-year Treasury yields briefly crossed 4.9%, the highest since May 2024.
The benchmark 10-year yield jumped 13.89 basis points to 5.106%, the highest since 2007 and its biggest one-day increase since April 2025.Surging bond yields make debt markets more attractive, which in turn often leads to some downturn in equity markets.2. Fed rate hike expectationsThe downturn in stock market was further exacerbated by a sharp rise in expectations of steep rate hikes by the US Federal Reserve.
Fed funds futures traders are now pricing in a 66% chance of an October rate hike, up from 53% earlier in the day. This comes after data showed US business activity surged to a more than five-year high in September.3. Oil prices jumpAdding fuel to the worries, oil prices jumped back above $102 per barrel after falling below $99 earlier yesterday. Iran and the United States remain at odds over how to end the war.
The comments came after Iranian President Masoud Pezeshkian told the UN General Assembly that Tehran would never surrender to US pressure.Earlier on Wednesday, Iran's security chief Mohsen Rezaei said the Strait of Hormuz would remain closed until Iran's conditions were met. US Secretary of State Marco Rubio said on Wednesday that reaching a deal with Iran would require hard work over a period of time. He also said US President Donald Trump had military options.4.
Rupee tumblesThe Indian rupee tumbled to a one-week low, briefly slipping to 95.96 against the US dollar, marking the lowest level since September 17. The currency later ended at 95.9550 per dollar. “The rupee continues to hover in the 95.60-95.95 zone, with persistent FII selling in Indian markets keeping sentiment cautious.
Going ahead, US-Iran developments, Xi Jinping’s US visit and UN meeting updates could keep currency markets volatile,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.Also Read: IPO reality check! Is GMP a useful signal or just market noise? Here’s what experts thinkWhat lies ahead for Dalal Street?Indian equities witnessed a sharp risk-off session as selling intensified across sectors, particularly financials.
The correction reflects more than routine profit-booking, said Vikram Kasat, Chief Business Officer of Advisory and Dealing at PL Capital. He highlighted that the rise in the US 10-year Treasury yield to around 5.11%, crude oil remaining above $100 a barrel and persistent geopolitical uncertainty are collectively raising concerns around inflation, borrowing costs and the pace of global monetary easing.“This is prompting investors to reduce risk, particularly in rate-sensitive segments,” he added.
Going forward, the analyst said volatility could remain elevated until there is greater clarity on crude prices and global yields.Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication.
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