Why is market falling today? Sensex plummets over 1,200 points, Nifty below 23,100. 5 factors behind bloodbath on D-Street
The Indian stock market fell significantly as Sensex and Nifty dropped over 1%. The downturn was driven by surging US bond yields, which reached a 19-year high. Expectations of a rate hike by the ...
Source: The Economic Times on MSN · The Hindu BusinessLine · The Times of India · September 24, 2026 at 9:02 AM · AI-assisted report
Single-sourceNEW DELHI, 24 SEPTEMBER 2026 —
The Indian equity market experienced a sharp correction on Thursday, with the benchmark Nifty 50 index closing at 23,346.40, a gain of 75.80 points or 0.33 percent, while the BSE Sensex ended the session at 74,294.96, dipping 19.63 points or 0.03 percent.
Market Impact
This mixed performance followed a period of significant volatility where the indices had previously dropped over one percent, a downturn attributed to surging US bond yields that reached a 19-year high.
The market sentiment remained cautious as investors continued to track global cues, crude oil prices, and institutional flows, with the broader economic environment under close scrutiny due to the impact of rising yields on inflation expectations.
The primary driver of the recent market turbulence was the spike in US bond yields, which hit a level not seen in nearly two decades. This surge in yields heightened expectations of a rate hike by the Federal Reserve, creating headwinds for emerging market equities, including India. The transmission of these global monetary policy signals to the domestic market was evident in the cautious trading behavior observed throughout the session.
Investors weighed the implications of tighter global liquidity against domestic economic indicators, leading to a defensive posture in equity allocation. The interplay between global bond markets and equity valuations remains a critical factor for Indian investors, particularly as the cost of borrowing rises globally.
Sectoral performance on the National Stock Exchange (NSE) revealed a divergent trend, with defensive and cyclical stocks showing varying degrees of resilience. Nifty Realty emerged as the biggest gainer among sectoral indices, rising 1.64 percent, suggesting investor interest in real estate assets despite the broader market uncertainty. Nifty Media also performed strongly, surging 1.38 percent, while Nifty Metal gained 1.24 percent, indicating strength in commodity-linked sectors.
Nifty Auto rose 0.55 percent, and both Nifty Pharma and Nifty PSU Bank increased by 0.54 percent, reflecting steady demand in healthcare and public sector banking. Nifty FMCG, a typical defensive play, gained a modest 0.20 percent, underscoring the shift toward stable consumer staples during periods of market stress.
In contrast, the technology sector faced significant pressure, with Nifty IT closing in the red, losing 1.73 percent. This decline highlights the sensitivity of Indian IT stocks to global economic conditions and currency fluctuations, as the sector is heavily dependent on exports to the United States. The divergence between the strong performance of domestic consumption and real estate sectors and the weakness in IT shows the complex nature of the current market environment.
Investors are navigating a landscape where domestic growth drivers coexist with global headwinds, requiring a nuanced approach to portfolio allocation. The sectoral rotation observed on Thursday reflects a broader trend of investors seeking value in domestic plays while reducing exposure to globally sensitive sectors.
Crude oil prices continued their downward trajectory on Friday, with Brent crude oil prices down 1.39 percent at $103.31 per barrel at the time of reporting. Despite this recent decline, crude oil prices remain elevated over the longer term, posing a persistent challenge for the Indian economy. The movement in crude prices remains an important monitorable for Indian markets, as investors continue to assess its impact on inflation and the broader economic environment.
High crude prices contribute to India’s trade deficit and can lead to higher fuel costs, which in turn affect consumer spending and corporate margins. The sustained elevation of oil prices necessitates careful monitoring by policymakers and investors alike, as it directly influences the country’s fiscal health and inflationary pressures.
In the foreign exchange market, the Indian rupee exhibited modest strength against the US dollar. The currency opened at 95.75 and touched an intraday high of 95.71 before settling at 95.89 (provisional) against the greenback, which was its previous closing level. The rupee ended the day at 95.8750 per dollar, up modestly on the day but logging a 0.3 percent week-on-week fall.
This slight appreciation provides some relief to importers and helps mitigate the impact of high crude oil prices on the current account deficit. However, the weekly decline indicates that the rupee remains under pressure from global dollar strength and domestic capital outflows. The stability of the rupee is for maintaining investor confidence and controlling inflation, as a weaker currency can lead to higher import costs and increased inflationary pressures.
Corporate developments in the real estate sector provided a positive note amidst the market volatility. DLF, a major real estate developer, announced plans to launch a shopping mall in Goa with an investment of ₹500 crore by March. The project is targeting over ₹150 crore in annual rentals, signaling strong confidence in the commercial real estate market.
This expansion reflects the growing demand for retail spaces in emerging markets and the potential for high returns in the sector. The move by DLF also highlights the resilience of the real estate sector, which has shown strong performance in recent months, as evidenced by the gains in Nifty Realty. The development of large-scale commercial projects contributes to urban infrastructure and economic growth, providing a long-term positive outlook for the sector.
In a significant initiative to promote capital market participation among small businesses, the Bombay Stock Exchange (BSE), Asia’s oldest stock exchange, partnered with Meesho, India’s largest e-commerce platform by Annual Transacting Users and Placed Orders, to launch Project Shikhar. The program was introduced through a two-day awareness event in New Delhi, aimed at helping Meesho sellers understand the opportunities available through the BSE SME platform.
The sessions covered listing eligibility, financial preparedness, governance, compliance, disclosures, and the role of intermediaries in the listing process. Launched in June 2026, Project Shikhar is a first-of-its-kind program designed to enable eligible micro, small and medium enterprises (MSMEs) to explore capital markets for growth capital.
The Delhi programme marked the first on-ground engagement under Project Shikhar since its launch, with BSE representatives holding interactive sessions with Meesho vendors. These sessions provided detailed briefings on the SME listing framework, empowering small businesses to access formal capital markets. This initiative is part of a broader effort to deepen the capital markets in India and provide alternative funding sources for MSMEs, which are a component of the Indian economy.
By facilitating the listing of SMEs, the BSE and Meesho aim to enhance liquidity and investment opportunities in the SME segment, contributing to the overall growth and stability of the financial system. The program points to the importance of financial inclusion and the role of technology platforms in driving economic participation.
The market’s cautious stance and the mixed sectoral performance reflect the complex interplay of global and domestic factors influencing Indian equities. While the surge in US bond yields and elevated crude oil prices pose challenges, the strength in domestic sectors such as real estate and media indicates underlying resilience. The modest appreciation of the rupee and the corporate expansion in real estate provide additional support to the market.
The launch of Project Shikhar by BSE and Meesho highlights the ongoing efforts to broaden the investor base and promote capital market participation among small businesses. As investors continue to navigate these dynamics, the focus remains on monitoring global cues, crude oil prices, and institutional flows to gauge the direction of the market.
The forward-looking perspective suggests that while short-term volatility may persist, the long-term growth potential of the Indian economy remains intact, supported by strong domestic demand and structural reforms.
Related: BSE · Bombay Stock Exchange · New Delhi