₹7 Lakh Crore Washout, Sensex, Nifty Hit Six-Month Lows as Oil Rebound: Gold and Silver Also Crash

Equity benchmark indices crashed to six-month lows on Monday as surging global crude prices, elevated U.S. bond yields, and persistent capital outflows triggered widespread liquidation across Indian trading floors.

The 30-share BSE Sensex dropped 1,124.02 points, or 1.52%, to close at 72,771.72, while the broader NSE Nifty 50 sank 360.25 points, or 1.56%, to end at 22,780.25. Both benchmarks settled at their lowest levels since late March 2026. The single-session sell-off wiped out nearly ₹7 lakh crore in total market capitalisation of BSE-listed firms.

Selling momentum extended deep into mid-cap and small-cap segments. The Nifty Midcap 100 index fell 991.80 points, or 1.63%, to 59,914.20, while the Nifty Smallcap 100 index dropped 364.15 points, or 1.85%, to 19,351.10.

Gold and Silver Crashes

Traditional safe-haven assets failed to attract bids. Gold futures on the Multi Commodity Exchange (MCX) slid ₹3,501.00, or 2.32%, to ₹1,47,380.00 per 10 grams. MCX silver futures dropped ₹6,907.00, or 2.94%, to trade at ₹2,27,789.00 per kilogram. India VIX, the primary measure of domestic market volatility, climbed sharply as institutional traders unwound leveraged holdings throughout the session.

In international spot markets, gold traded near $4,150 per troy ounce, down over 3% as surging U.S. bond yields and a stronger dollar weighed on non-yielding assets. Spot silver experienced a sharper drop, falling roughly 5% to hover around $60.90 per troy ounce amid broad-based profit taking and margin liquidations across global commodity exchanges.

Middle East Tensions Send Crude Above $105

The cross-asset downturn followed fresh geopolitical friction in the Middle East. Brent crude surged past $105 a barrel after U.S. President Donald Trump publicly rejected an Iranian offer to reopen the Strait of Hormuz, dampening hopes for an early end to regional shipping disruptions.

Higher energy prices raise immediate structural challenges for India, which relies on imports for over 85% of its crude requirements. Analysts noted that sustained crude firmness threatens domestic inflation forecasts and widens the current account deficit. Concurrently, 10-year U.S. Treasury yields held above 5.10%, prompting foreign institutional investors to redirect capital toward dollar-denominated assets. The Indian rupee felt corresponding pressure, weakening toward 95.95 per U.S. dollar.

Financials and Cyclical Stocks Lead Declines

Heavyweight banking and financial stocks spearheaded the market slide. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Bajaj Finance logged substantial losses alongside major automotive and industrial names.

Market participants indicated that margin requirements in equity derivatives forced several institutional accounts to liquidate commodity positions. Technical chartists identify immediate support for the Nifty 50 in the 22,500–22,600 band, noting that short-term stability depends heavily on crude price movements and international bond yield trajectories.