Sensex Falls 700 Points, Nifty Below 22,600: Why Is the Market Falling?

The Indian stock market is facing renewed selling pressure, with the Sensex falling nearly 700 points and the Nifty slipping below the 22,600 mark on September 29. The decline comes after a sharp fall in the previous session and reflects a combination of geopolitical uncertainty, rising crude oil prices, higher bond yields and concerns over foreign fund flows.

The biggest concern for investors is the uncertainty surrounding the Iran-US situation. Hopes of a meaningful diplomatic breakthrough have weakened, keeping markets nervous about the global supply of crude oil. Brent crude moved above $107 a barrel, raising concerns for oil-importing economies such as India. Higher crude prices can increase the import bill and put additional pressure on inflation, corporate margins and economic growth.

Another important factor is the sharp rise in global bond yields. The US 10-year Treasury yield moved above 5.25%, making fixed-income assets relatively more attractive and potentially encouraging investors to reduce exposure to emerging markets. At the same time, the Indian rupee weakened beyond Rs 96 against the US dollar, adding another layer of pressure.

Foreign institutional investor (FII) selling is also weighing on Dalal Street. According to provisional NSE data cited by The Economic Times, foreign investors sold more than Rs 5,353 crore of Indian equities on Monday. Weak global market cues and heightened volatility around the Nifty monthly derivatives expiry are adding to the pressure.

The upcoming Reserve Bank of India monetary policy meeting is another factor investors are watching closely. Expectations of higher interest rates could influence liquidity, borrowing costs and equity valuations.

The current sell-off therefore appears less like a single-trigger event and more like the result of several global and domestic pressures converging at the same time. For investors, the episode highlights how quickly geopolitical developments, oil prices, currencies, bond yields and foreign flows can reshape market sentiment.