Stock Market Crash Today: Indian equities came under pressure on Monday as escalating tensions in West Asia dampened risk sentiment, offsetting the positive momentum seen in the previous sessions. Both benchmark indices, Sensex and Nifty 50, fell 1.39 per cent and 1.37 per respectively at intraday to trade lower at 74,807.97 and 23,317.10, respectively.
The weaknesses came on the heels of continued pressure from the West Asia crisis that pushed oil prices near multi year record high and weakened Rupee to a fresh record low of over 96 per US dollar on Monday. Domestic equity markets opened on a weak note, with all major indices trading in the red.
The Nifty 50 declined by 326 points at the open, while the Bank Nifty dropped nearly 2 per cent, down nearly 900 points, reflecting broad-based selling pressure in financial stocks. The broader markets also saw weakness, with the Nifty Midcap 100 falling more than 1 per cent, whereas the Nifty Smallcap 100 also fell more than 1 per cent at the opening.
Why Market Is Down Today: 3 Reasons
Global oil prices surged past the USD 110 mark, driven by escalating tensions in West Asia and heightened geopolitical uncertainty, while U.S. equity markets closed sharply lower amid rising bond yields and weakening investor sentiment. Brent crude climbed to around USD 111.4 per barrel, gaining roughly 2 per cent, while West Texas Intermediate crude rose to USD 108.0, up over 2.4 per cent. Adding to market anxiety, U.S. President Donald Trump in Truth Social post write for Tehran that “The clock is ticking,” Trump further asked Iran to “get moving fast.”
Oil prices have remained highly volatile, with concerns mounting over potential supply disruptions at the Strait of Hormuz, a critical maritime chokepoint that handles nearly 20 per cent of global oil flows, heightening inflation risks for economies worldwide.
Earlier on April 30, Brent climbed near a multi-year high of USD 126 a barrel, gaining nearly 7 percent intraday, extending the momentum built on the back of a strong surge earlier. Before, on March 9, Brent crude surged over 27 per cent to trade at a multi-year high of USD 119 a barrel amid escalating Middle East tensions. The oil price, although at a multi-year high, is still lower than its all-time high of USD 147 per barrel seen in July, 2008. The recent hike was also lower than the USD 130 per barrel price that was hit in 2022 during the Russia-Ukraine crisis.
The Indian rupee came under sharp pressure on Monday, opening 21 paise weaker at a record low of Rs 96.17 against the US dollar, compared with Rs 95.96 in the previous session. The currency extended its losses after breaching the key Rs 96 mark for the first time on Friday, weighed down by a surge in global crude oil prices above USD 110 per barrel and continued strength in the dollar, which have intensified concerns around India’s import bill and external balances.
“With the rise in dollar index due to simmering Iran tensions the dollar Index has risen to 99.36 levels while Asian currencies are all down against the dollar. With the rise in oil prices to beyond USD 111.50 per barrel rupee will be affected the most as rising oil prices increases the outflows of $ along with the outflows already happening due to FPIs,” said Anil Kumar Bhansali, Head Of Treasury, Finrex Treasury Advisors LLP.
Foreign fund weakness remains a major drag on sentiment. Persistent selling and limited buying by FIIs has continued to weigh on the market, as global investors trim their exposure to Indian equities amid elevated uncertainty and risk aversion.
Data from exchanges showed foreign portfolio investors only bought Rs 1,329.17 crore worth Indian equities on May 18, 2026, as per exchange data. FPI buy orders worth Rs 16,299.60 crore slightly exceeded their sell of Rs 14,970.43 crore, marking a lukewarm sentiment that has added to the sustained pressure on the markets. In contrast, domestic institutional investors were the net seller, recording a net outflow of Rs 1,958.82 crore on the same day, with total sale of 16,920.70 crore against purchase of Rs 14,961.88 crore.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
