Stock market crash today: Sensex ends over 870 points down, Nifty50 below 22,900 - top reasons for fall

Stock market crash today: After a week of rallying, the Indian equity benchmarks crashed in trade on Monday. Heavy selling in major private banking stocks, along with other factors, weighed on investor sentiment and pulled the benchmark indices into negative territory.Nifty50 ended the day at 22,888.95, down 257 points or 1.11%. BSE Sensex closed at 73,852.90, down 876 points or 1.17%. The decline provisionally erased nearly Rs 4.70 lakh crore from the combined market capitalisation of BSE-listed companies, taking it down to Rs 467 lakh crore.V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “The momentum created by the 2.8% surge in Nifty last week and the good results from the banking majors after the better-than-expected results from the leading IT companies have the potential to keep the market resilient. However, the escalation of the tensions in Hormuz and the consequent surge in Brent crude to $109 will act as a strong headwind to the market.”“Even though the attractive valuations of the large-caps and the appreciation of the rupee have turned the stance of FIIs towards India a bit positive, it is unlikely to sustain, given the high crude price. Large-caps outperforming the mid-and small-caps is a rational trend, and this is likely to sustain, going forward. The market actions this week are likely to be stock-specific in response to the Q2 results,” he added.Axis Bank was the biggest loser on the Sensex, with its shares falling around 5%. HDFC Bank, Infosys, Trent, HUL, Bajaj Finserv, NTPC, Bajaj Finance and ICICI Bank also declined by up to 2%. Adani Ports and Maruti Suzuki moved against the broader trend, gaining as much as 2%.Selling pressure extended to the broader market as well.Why did stock market crash today?Banking stocks downShares of major private sector lenders, particularly Axis Bank and HDFC Bank, led the losses on the benchmark indices after their second-quarter results failed to meet market expectations.Axis Bank shares dropped more than 5% after the lender reported a 38% year-on-year increase in standalone net profit to Rs 7,003 crore for the second quarter of FY27. Despite the growth in earnings, the result fell short of analysts' estimates.HDFC Bank also faced selling pressure, with its shares declining more than 2%. The country's largest private sector lender reported a net profit of Rs 19,510 crore for Q2FY27, up 4.6% from Rs 18,641 crore in the corresponding quarter of the previous year.Shares of ICICI Bank and Yes Bank also came under pressure, falling by more than 1% each.Foreign investor outflows continue to weigh on sentimentForeign institutional investors (FIIs) bought Indian equities worth Rs 1,166 crore on Friday, according to provisional data from the NSE. However, the purchase was relatively small compared with the substantial outflows recorded during October.FIIs have been net sellers in nine of the 11 trading sessions so far this month, keeping sustained pressure on the domestic equity market.Crude oil prices highBrent crude futures fell by more than 2%, but continued to trade well above last week's levels at over $107 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude was hovering close to $100 per barrel.The decline in oil prices followed US President Donald Trump's decision to waive sweeping sanctions on Russia, including restrictions targeting its energy sector. However, Secretary of State Marco Rubio said Trump would take up to 60 days to evaluate the economic consequences of the waiver.Weakness across global marketsIndian equities followed the broader decline across several international markets. Japan's Nikkei slipped 0.64%, while Indonesia's Jakarta Composite plunged more than 5%. South Korea's Kospi moved in the opposite direction, rising around 2% as investors bought AI stocks after their recent decline.Indian equities are seen as having an anti-AI advantage. As a result, gains in AI-related stocks can sometimes coincide with weakness in the domestic market.US markets also suffered a sharp sell-off on Friday. The technology-heavy Nasdaq tumbled more than 2%, while the S&P 500 declined by over 1%.Investors book profits after recent gainsMonday's decline came after Indian markets had rallied sharply over the previous two trading sessions. The Nifty gained more than 2% on Thursday and Friday despite several headwinds, prompting investors to lock in some of their recent profits.Market participants were also bracing for possible volatility around the Nifty's expiry ahead of Tuesday's market holiday.Vinod Nair, Head of Research, Geojit Investments Limited said, “Indian equities came under renewed selling pressure, reversing the recent recovery as weak global cues and selling in private banks and IT stocks weighed on investor sentiment. Global markets remained cautious ahead of a busy week of corporate earnings. Private banks remained under pressure following quarterly earnings and concerns over margin trends, while PSU banks bucked the broader weakness, supported by expectations of relatively resilient margins and asset quality.”“Crude oil prices eased after the US waived key sanctions linked to Russia, raising expectations of increased Russian fuel supplies to the global market. However, crude prices remained elevated, with geopolitical tensions continuing to influence the outlook. The Nifty slipped below the psychologically important 23,000 level, while broader market breadth remained weak, reflecting cautious investor sentiment amid earnings-related volatility and uncertain global cues,” he added.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)You use AI every day. Now get your AI Quotient. 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