Why is market down today: Key factors behind Sensex, Nifty fall
The sharp fall was led by heavyweights such as HDFC Bank Ltd, State Bank of India (SBI), ICICI Bank Ltd, Bharti Airtel Ltd, Larsen & Toubro (L&T), Bajaj Finance Ltd, Mahindra & Mahindra (M&M), Tata Steel, Axis Bank, Reliance Industries Ltd (RIL), ITC Ltd and Titan, which dragged the headline indices lower.
- Mar 23, 2026,
- Updated Mar 23, 2026 10:05 AM IST
Indian equity benchmarks plunged in Monday's trade as escalating tensions in West Asia triggered a broad-based selloff across sectors. During the early session, the 30-share BSE Sensex pack tumbled as much as 1,609.95 points to hit a low of 72,923.01, while the NSE Nifty index declined 515.2 points to 22,599.30.
The sharp fall was led by heavyweights such as HDFC Bank Ltd, State Bank of India (SBI), ICICI Bank Ltd, Bharti Airtel Ltd, Larsen & Toubro (L&T), Bajaj Finance Ltd, Mahindra & Mahindra (M&M), Tata Steel, Axis Bank, Reliance Industries Ltd (RIL), ITC Ltd and Titan, which dragged the headline indices lower.
Selling pressure remained widespread, with sectoral indices trading in the red. The broader market also witnessed significant weakness, as Nifty Midcap 100 dropped 2.82 per cent and Nifty Smallcap 100 slipped 3 per cent.
The steep decline eroded over Rs 10.7 lakh crore in investor wealth during the opening trade. The total market capitalisation (m-cap) of BSE-listed companies fell by Rs 10.76 lakh crore to Rs 418.35 lakh crore from Rs 429.11 lakh crore in the previous session.
Market breadth remained weak, with 3,053 out of 3,855 stocks declining, while 619 advanced and 183 remained unchanged, highlighting the intensity of the selloff.
Foreign institutional investors (FIIs) extended their selling in the previous session, offloading equities worth Rs 5,518 crore. However, domestic institutional investors (DIIs) provided some support as they purchased equities worth Rs 5,706 crore.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "With the war in West Asia getting into the fourth week, there is no clarity on when the war will end. Unfortunately, the war is escalating with President Trump giving ultimatum to Iran to open the Strait of Hormuz in 48 hours. Iranian president’s response that 'the Strait of Hormuz is open to all except those who violate our soil' has prevented panic in the oil market. However, the uncertainty is huge and markets will be waiting and watching the outcome."
He added, "It is important to understand that the huge risk-off globally has impacted all assets including stocks, bonds and precious metals like gold and silver. In fact, the crash in the safe haven gold is worse than in equities. There is nothing that investors can do during this crisis characterised by huge uncertainty. If history is any guide investors should not panic, but keep cool. The sharp depreciation in the rupee will benefit exporters like pharmaceuticals and autos and auto ancillaries. The beaten down IT segment may surprise with a bounce back."
Hitesh Tailor, Research Analyst at Choice Equity Broking, advised investors to maintain a disciplined and cautious approach amid heightened volatility.
Indian equity benchmarks plunged in Monday's trade as escalating tensions in West Asia triggered a broad-based selloff across sectors. During the early session, the 30-share BSE Sensex pack tumbled as much as 1,609.95 points to hit a low of 72,923.01, while the NSE Nifty index declined 515.2 points to 22,599.30.
The sharp fall was led by heavyweights such as HDFC Bank Ltd, State Bank of India (SBI), ICICI Bank Ltd, Bharti Airtel Ltd, Larsen & Toubro (L&T), Bajaj Finance Ltd, Mahindra & Mahindra (M&M), Tata Steel, Axis Bank, Reliance Industries Ltd (RIL), ITC Ltd and Titan, which dragged the headline indices lower.
Selling pressure remained widespread, with sectoral indices trading in the red. The broader market also witnessed significant weakness, as Nifty Midcap 100 dropped 2.82 per cent and Nifty Smallcap 100 slipped 3 per cent.
The steep decline eroded over Rs 10.7 lakh crore in investor wealth during the opening trade. The total market capitalisation (m-cap) of BSE-listed companies fell by Rs 10.76 lakh crore to Rs 418.35 lakh crore from Rs 429.11 lakh crore in the previous session.
Market breadth remained weak, with 3,053 out of 3,855 stocks declining, while 619 advanced and 183 remained unchanged, highlighting the intensity of the selloff.
Foreign institutional investors (FIIs) extended their selling in the previous session, offloading equities worth Rs 5,518 crore. However, domestic institutional investors (DIIs) provided some support as they purchased equities worth Rs 5,706 crore.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "With the war in West Asia getting into the fourth week, there is no clarity on when the war will end. Unfortunately, the war is escalating with President Trump giving ultimatum to Iran to open the Strait of Hormuz in 48 hours. Iranian president’s response that 'the Strait of Hormuz is open to all except those who violate our soil' has prevented panic in the oil market. However, the uncertainty is huge and markets will be waiting and watching the outcome."
He added, "It is important to understand that the huge risk-off globally has impacted all assets including stocks, bonds and precious metals like gold and silver. In fact, the crash in the safe haven gold is worse than in equities. There is nothing that investors can do during this crisis characterised by huge uncertainty. If history is any guide investors should not panic, but keep cool. The sharp depreciation in the rupee will benefit exporters like pharmaceuticals and autos and auto ancillaries. The beaten down IT segment may surprise with a bounce back."
Hitesh Tailor, Research Analyst at Choice Equity Broking, advised investors to maintain a disciplined and cautious approach amid heightened volatility.