Sensex, Nifty shed over 5% in a month; Rs 17.17 lakh crore wiped out

New Delhi: Indian equities have lost more than 5 percent over the past month, wiping Rs 17.17 lakh crore off investor wealth as soaring crude prices, geopolitical tensions and elevated US bond yields fuelled a sustained sell-off.

Since August 27, the BSE Sensex has fallen 4,161.87 points, or 5.40 percent, while the NSE Nifty has declined 1,310.6 points, or 5.44 percent. Signals of further monetary tightening by the US Federal Reserve have added to investor unease.

Follow The PSUWatch Channel on WhatsApp

The combined market capitalisation of BSE-listed companies fell by Rs 17.17 lakh crore during the period to Rs 474.37 lakh crore, or about USD 4.94 trillion.

Monday’s sharp decline alone erased Rs 7.52 lakh crore in investor wealth. The Sensex slumped 1,124.02 points, or 1.52 percent, to close at 72,771.72 — its lowest finish since March 30, 2026. The Nifty dropped 360.25 points, or 1.56 percent, to 22,780.25, a near six-month low.

The latest selling pressure came as Brent crude jumped nearly 4 percent to USD 108.3 a barrel, intensifying concerns over prolonged supply disruptions from the West Asia conflict.

Vinod Nair, Head of Research at Geojit Investments, said the US rejection of a ceasefire proposal had weakened hopes of an early diplomatic resolution and raised the risk of sustained commodity-price pressures.

“Bears remained firmly in control as the market breached a key psychological support level, reflecting growing investor caution amid deteriorating global macro conditions,” he said.

Follow PSU Watch on LinkedIN

With Brent trading above USD 108 a barrel and the US 10-year bond yield at 5.2 percent, equities face pressure from both higher energy costs and tighter global financial conditions.

Ankur Punj, Managing Director of Equirus Wealth, said the escalating US-Iran conflict and the resulting surge in crude prices had triggered a broader sell-off in domestic equities. Persistent overseas fund outflows and US bond yields above 5 percent were likely to keep sentiment cautious, with a negative bias in the near to medium term, he added.

Ponmudi R, CEO of Enrich Money, said rising global bond yields and a stronger dollar posed further challenges for emerging markets, potentially constraining foreign portfolio flows and appetite for risk.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)