Stock Market Crash Today: Sensex, Nifty decline below psychological crucials, Nifty slips under 25700, Sensex falls 1000 points: Why markets are falling

Indian markets opened sharply lower on Monday, with the Sensex crashing over 3 per cent and the Nifty 50 slipping more than 300 points amid a surge in global risk aversion. The sell‑off followed a dramatic escalation in West Asia, where coordinated US‑Israel strikes killed Iran’s Supreme Leader Ayatollah Ali Khamenei, triggering fears of a wider regional conflict and unleashing turmoil across global equities, currencies, and commodities. Notably, India VIX also climbed over 17 per cent on Monday.

As of 10:44 AM Nifty 50 continued to trade 1.41 per cent lower at 24,822, while Sensex slipped 1.42 per cent at 80,118 at the same time.

All major sectoral indices traded in the red on Monday, with Nifty Realty emerging as the top sectoral loser, slipping more than 2 per cent as broad‑based weakness gripped the market. The Nifty Smallcap 100 also opened sharply lower at 16,928, down nearly 640 points from the previous session’s close, reflecting heavy selling across broader market segments. Meanwhile, Nifty Metal showed relative resilience, edging down just 0.2 per cent. Amid the slump, Nifty India Defence stood out as the top thematic gainer, with defence and drone stocks trading higher, Paras Defence, Bharat Dynamics (BDL), Bharat Electronics (BEL), and Ideaforge were among the notable outperformers.

Why the Market Is Falling

The weekend’s coordinated military attacks by the US and Israel on key Iranian leadership and strategic sites triggered a wave of retaliatory missile and drone strikes across the Middle East, hitting Israel, Bahrain, Kuwait, Qatar, the UAE and Jordan. With Iran’s Supreme Leader killed and Washington calling for Iranian forces to stand down, investors rushed to unwind risk positions as the situation moved from geopolitical tension to full‑scale conflict. The immediate fallout saw crude oil prices spike more than 13 per cent, gold soar as safe‑haven demand surged, and the rupee open sharply weaker at 91.25. The combination of a collapsing currency, surging crude, and heightened global volatility set the stage for a severe sell‑off on Dalal Street.

The escalation marks one of the most serious security crises in years, with Iran launching ballistic missiles and drones at US bases and regional allies across the Gulf, while explosions were also reported in civilian areas, including Dubai. The conflict, sparked by failed nuclear talks, domestic unrest in Iran, and rising US pressure, has now evolved into direct military confrontation backed by large‑scale operations.

On February 28, 2026, the US and Israel reportedly launched coordinated strikes (Operations Roaring Lion and Epic Fury) targeting Iranian military sites, nuclear facilities, and leadership in Tehran, Isfahan, and other cities.

As a result, Iran retaliated immediately with missile and drone barrages targeting US bases in Qatar, Kuwait, Bahrain, the UAE, Jordan, Iraq, and Saudi Arabia, along with strikes on Israel. Explosions reportedly hit civilian areas, including Dubai and other locations.

Speaking to ET NOW, market veterana nd ace investor Ramesh Damani said,

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Following the conflict Indian equities opened deep in the red on Monday, with the Nifty 50 sinking 2.11 per cent at market open to hit an intraday low at 24,645, the 30-share pack Sensex tumbled over 3 per cent at the beginning of the session to hit an intraday low of 78,543 following the heightened conflict in the Middle East led by tension between Israel, US and Iran.

Mirroring the Nifty 50 index, the Bank Nifty opened weak at 59,204.30. Market breadth deteriorated immediately, reflected in the advance‑decline ratio of 4:46, signalling broad‑based selling pressure across sectors. Early in trade, only a handful of stocks managed to stay afloat as sentiment remained risk‑off amid heightened geopolitical concerns.

At the market pre-open session, Nifty 50 crashed 1,000 points as escalating tensions between the US and Iran roiled global markets. Monday morning also saw a surge in crude prices, Brent jumped more than 13 per cent, briefly topping USD 80 a barrel, alongside a weakened rupee, which opened 27 paise lower at 91.25, adding to the pressure.

Risk sentiment deteriorated across regions, with Asian shares slipping 1.2 per cent and US equity futures down 0.6 per cent, while safe‑haven flows pushed gold higher.

(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.)