Indian stock market today has seen a significant drop in the Sensex and Nifty for the third consecutive session. The Sensex plunged more than 813 points and the Nifty50 slipped below the 23,450 mark. Investor sentiment was dented by rising crude oil prices, rising tensions between Iran-U.S., pressure on IT stocks, weaker rupee and foreign investors selling.
Key Highlights
- Indian stock market today took a hit with oil prices ticking up, geopolitical concerns and heavy IT selling dampening investor mood.
- The Sensex tanked by 813 points, with the Nifty falling below 23,450 on the back of foreign selling and a weak rupee.
The Sensex lost 813 points to close at 74,764 and the Nifty50 was trading around 204 points lower at 23,431. The de-listing sledgehammer hit Rs 2 lakh crore off the market combined of BSE listed companies' market capitalisation, which dipped to around Rs 484 lakh crore.
Major Sensex stocks that declined were the 2% to 5% losses suffered by Infosys, HCLTech, Tech Mahindra, and TCS. Similarly, Hindustan Unilever and HDFC Bank fell by about 2% to each share. On the flip side, Adani Ports have risen by approximately 4 per cent, Tata Steel has risen by over 2 per cent.
The broader stock market today also continued to sell off with Nifty Midcap 100 and Nifty Smallcap 100 down up to 0.6%. The Nifty IT index fell over 3% while the Nifty Metal index rose by close to 2%. The market was bearish on the breadth as 2,092 stocks were down against 1,484 were up on the NSE.
5 Key Factors Behind Today’s Stock Market Fall
1. Rising Iran-U.S. Geopolitical Tensions
New tensions in the Middle East raised fresh fears of global energy security and economic stability. Teams in Iran-backed Houthis hit Saudi cities and US forces attacked Iranian oil tankers.
Iran's Revolutionary Guards also claimed they had hit US ships and oil tankers in the Gulf as a response to attacks on Iranian tankers. The developments prompted worries that it could cause a long-term disruption in the Strait of Hormuz, one of the world's most vital oil shipping lanes.
2. Crude Oil Prices Reach $100 Per Barrel
The latest escalation in the Middle East conflict caused crude oil prices to jump to above $100 per barrel. Concerns about an extended closure or disruption of the Strait of Hormuz have fueled fears of more limited oil supplies in the world.
Oil prices had also dipped below $90 after hopes for a ceasefire and negotiation. But there are renewed worries about continuing high energy prices and their contribution to inflation and economic growth.
3. IPO Activity Raises Liquidity Concerns
The strong primary-market activity also weighed on sentiment in the secondary market. Six mainboard IPOs opened for subscription, including Rentomojo, Karamtara Engineering, LCC Projects, Steamhouse India, Manipal Payment & Identity Solutions and Asset Reconstruction.
Geojit Investments Chief Investment Strategist V K Vijayakumar said the booming IPO market is absorbing liquidity from the secondary market and contributing to the sustained decline in the Nifty.
4. IT Stocks Witness Heavy Selling
IT stocks were among the biggest losers, with the Nifty IT index plunging more than 3%. Coforge shares dropped around 5% after the company announced the resignation of non-executive independent director and chairperson Om Prakash Bhatt with immediate effect on September 8.
Infosys, TCS, Tech Mahindra and other technology stocks also declined sharply. Expectations around US Federal Reserve rate hikes added to concerns surrounding the IT sector.
5. Rupee Weakness Adds to Market Pressure
The rupee weakened to 95.1050 against the US dollar, extending its recent decline. Persistent foreign institutional investor selling has added pressure on the domestic currency.
Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said investors will closely track the US PCE Price Index and the Federal Reserve’s upcoming policy decision. He placed the near-term rupee range at 94.50-95.25.
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What Lies Ahead for Dalal Street?
The strong performance of recent IPO listings has continued to attract both retail and institutional investors towards the primary market. V K Vijayakumar noted that IPO listing gains have risen to around 22% since June, even as the Nifty’s return in 2026 remains negative.
He said foreign investors, despite selling around Rs 28,400 crore through exchanges this year, have invested nearly Rs 36,000 crore in IPOs. The resulting enthusiasm has also pushed up IPO valuations, making selective investing increasingly important.
According to Vijayakumar, investors should avoid applying blindly to IPOs because of fear of missing out (FOMO). Instead, he suggested considering fairly valued large-cap stocks in growth sectors, particularly where valuations remain reasonable.
Technical Outlook for Nifty
The Nifty50 formed its third consecutive sizeable bearish candle on the daily chart, accompanied by a lower high and lower low, indicating continued weakness.
“It is closing below the July low of 23,606, indicating the continuation of the corrective move,” said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
The short-term outlook is still negative and the next down support is around the 23,300 – 23,200 area. The 20-day EMA, and the area of recent breakdown may present a resistance around 23,800-24,000 on any recovery.
The current downtrend would need to be ongoing with higher highs and higher lows for the trend to indicate a pause.
