Indian Stock Market Takes a Hit Amid Global Tensions and Rising Oil Prices
The Indian stock market faced significant losses due to geopolitical tensions and rising oil prices, with the Sensex dropping over 1,100 points.
Mumbai, September 28 (Daily Kiran) : The Indian stock market experienced a steep decline on Monday, September 28, 2026, as geopolitical tensions and global economic uncertainties weighed heavily on investor sentiment. The rise in crude oil prices further exacerbated the situation.
The BSE Sensex plummeted by 1,124.02 points, or 1.52%, closing at 72,771.72. Similarly, the Nifty50 fell by 360.25 points, a decrease of 1.56%, ending the day at 22,780.25.
Trading began with the Sensex opening at 73,734.83, down 160.91 points or 0.21% from its previous close of 73,895.74. At one point, it dipped to a low of 72,716.23, marking a drop of 1,179.51 points or 1.59%. The Nifty 50 also opened lower at 23,064.90, down 0.32%, and hit a low of 22,762.20 during the day.
Investor confidence was shaken following U.S. President Donald Trump’s rejection of Iran’s latest proposal, alongside rising global bond yields driven by increasing crude oil prices. In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 indices fell by 1.63% and 1.85%, respectively.
Sector-wise, the Nifty PSU Bank sector was the worst performer, while both the Nifty Private Bank and Nifty Bank sectors also faced disappointing results. In contrast, the Nifty IT sector showed the least decline, demonstrating a relative strength amid the downturn.
Among the Nifty50 stocks, only Dr. Reddy’s Laboratories, Infosys, and HDFC Life saw gains. The biggest losses were recorded in shares of TMPV, Jio Financial Services, Powergrid, and L&T.
Market capitalization for all companies listed on the BSE dropped from approximately ₹482 crore to ₹474 lakh crore, reflecting a decrease of ₹8 lakh crore.
The market’s decline was largely attributed to geopolitical tensions, particularly Trump’s dismissal of Iran’s proposal to reopen the Strait of Hormuz and end hostilities. Iran emphasized that only diplomacy could resolve its conflicts with the U.S. and Israel, impacting global stock, oil, and bond markets.
Most Asian markets also reported declines, with South Korea’s index down by 2% and Japan’s Nikkei index falling by 0.10%. Chinese markets were similarly affected, showing declines of over 1%.
Concerns over supply disruptions due to the unresolved crisis in West Asia kept oil prices elevated. High crude prices could further exacerbate inflation and the current account deficit in India, the world’s third-largest oil importer.
Brent crude futures rose by 2.2% to $106.6 per barrel, while U.S. WTI crude climbed by 1.45% to $93.76 per barrel. The surge in oil prices and inflation concerns have reignited selling in bond markets.
