New Delhi: Benchmark indices Sensex and Nifty have dropped more than 5 per cent over the past month, wiping out Rs 17.17 lakh crore in investor wealth as surging crude oil prices, geopolitical uncertainties, and elevated bond yields dampened market sentiment.
Indications of further monetary tightening by the US Federal Reserve also weighed on sentiment during this time.
The 30-share BSE Sensex tumbled 4,161.87 points or 5.40 per cent since August 27 last month. The 50-share NSE Nifty also plunged 1,310.6 points or 5.44 per cent.
Investors’ wealth eroded by Rs 17,17,487.02 crore to Rs 4,74,36,620.19 crore (USD 4.94 trillion) during this period.
On Monday, the BSE benchmark tanked 1,124.02 points, or 1.52 per cent, to settle at 72,771.72, its lowest close since March 30, 2026. The Nifty dropped 360.25 points, or 1.56 per cent, to end at a near six-month low of 22,780.25.
Investors’ wealth declined by Rs 7.52 lakh crore on Monday alone.
“Bears remained firmly in control as the market breached a key psychological support level, reflecting growing investor caution amid deteriorating global macro conditions. The US rejection of the ceasefire proposal has heightened concerns that tensions in West Asia could persist for longer than anticipated, reducing the likelihood of a near-term diplomatic resolution and increasing the risk of prolonged supply-side disruptions and higher commodity prices,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Brent crude, the global oil benchmark, jumped nearly 4 per cent to USD 108.3 per barrel.
Brent crude at USD 108 and the US 10-year yield at 5.2 per cent are strong headwinds that are weighing on markets, an expert said.
“As the geopolitical situation turned bleak amid the escalating US-Iran conflict, global crude oil prices jumped sharply, triggering a broader sell-off in domestic equity markets. With US bond yields already scaling above 5 per cent and markets seeing little respite from overseas fund outflows, the undertone is likely to remain cautious with a negative bias in the near to medium term,” Ankur Punj, Managing Director, Equirus Wealth, said.
Rising global bond yields and a stronger US dollar also remain important headwinds for emerging markets, as tighter financial conditions could weigh on foreign portfolio flows and broader risk appetite, Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
PTI
