Market rout erases ₹13 lakh crore as global tensions trigger broad-based sell-off

A sharp sell-off swept through Indian equities on Monday, wiping out nearly ₹13 lakh crore in investor wealth as benchmark indices recorded one of their steepest single-day declines in recent months. The Sensex fell over 1,900 points while the Nifty slipped below the 22,500 mark, reflecting deep unease across segments.

The decline was not confined to frontline stocks. Mid-cap and small-cap indices also dropped close to 3 per cent, indicating a widespread retreat by investors. Market breadth remained decisively negative through the session, with selling pressure intensifying towards the close.

Volatility spiked alongside the fall, with the India VIX rising to levels last seen in mid-2024. The rupee weakened to a record low against the US dollar, compounding concerns around external vulnerability at a time of global uncertainty.

Traders pointed to a combination of global and domestic factors behind the downturn. Escalating geopolitical tensions and a surge in crude oil prices have heightened risk aversion, particularly for an import-dependent economy like India. At the same time, sustained foreign investor outflows have continued to weigh on sentiment.

For now, the market appears to be in a corrective phase, with near-term direction likely to remain tied to global cues and currency movements rather than domestic fundamentals alone.