The Sensex crashed 1,124.02 points, or 1.52%, to close at 72,771.72 on September 28, 2026, its lowest level in six months, as a US-Iran stalemate over reopening the Strait of Hormuz pushed Brent crude to about $108 a barrel. The Nifty 50 fell 360.25 points, or 1.56%, to 22,780.25, and investors lost nearly ₹9 lakh crore in market value.
Selling was broad-based: 47 of the 50 Nifty stocks declined and only three advanced. Foreign institutional investors had sold ₹3,693.93 crore of equities on the previous trading day, adding to pressure.
Why Did the Sensex Crash on September 28?
Three factors drove the fall. First, oil: Brent rose 3.81% to $108.3 a barrel after President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz. Second, foreign fund outflows continued. Third, elevated US bond yields and weak Asian markets reduced appetite for risk assets.
Vinod Nair of Geojit said the US rejection of a ceasefire heightened concerns that tensions could persist, raising the risk of prolonged supply disruptions and commodity price pressure. India imports most of its crude, so higher oil prices widen the import bill and pressure the rupee.
Which Stocks and Sectors Fell the Most?
Financials, PSU banks, metals, FMCG, oil and gas, and auto shares saw heavy selling, with PSU banks falling more than 3%. Among Sensex components, Larsen & Toubro dropped 2.81%, Power Grid 2.62%, Adani Ports 2.38%, HDFC Bank 2.3%, Hindustan Unilever 2.27% and Reliance Industries 2.24%. Infosys was the only major gainer.
Market and Trade Reaction
The rupee weakened to about 95.98 against the dollar, with state-run banks likely selling dollars under RBI guidance to limit losses. India’s 10-year bond yield rose to 7.1848%, its highest since April 2024. Across Asia, South Korea’s Kospi fell 2.70% and Japan’s Nikkei 0.73%.
What Happens Next?
Investors will watch developments on the Hormuz negotiations, daily crude prices and foreign fund flows. Any resumption of talks between Washington and Tehran could ease oil and support a rebound, while further escalation would keep pressure on the rupee and equities. Domestic triggers include the RBI’s liquidity operations and upcoming corporate earnings.
Frequently Asked Questions
How much did the Sensex fall on September 28, 2026?
The Sensex fell 1,124.02 points, or 1.52%, to close at 72,771.72, a six-month low. The Nifty 50 fell 1.56% to 22,780.25.
Why did the Indian stock market crash?
Rising crude oil prices after the US rejected Iran’s Hormuz reopening plan, continued foreign investor selling, high US bond yields and weak Asian markets drove the fall.
How much wealth did investors lose?
Investors lost nearly ₹9 lakh crore in market capitalisation during the session.
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