Five major factors contributed to the stock market disaster, which saw the Sensex drop 700 points and the Nifty 50 fall below 23,150. D-Street collapse

The BSE barometer Sensex ended the day at 73,524, down 719 points, or 0.97%. Today, it reached its lowest point of the day, 73,318. After reaching a low of 23,070 in intraday trading, the NSE Nifty ended the day 244 points, or 1.04%, lower at 23,123. Following a severe selloff throughout Asian markets amid rising tensions in the Middle East and a jump in crude oil prices, Indian stock market indices closed substantially lower on Monday, extending their decline to a second day. The risk appetite of international investors was also impacted by concerns about an increase in US interest rates.

The BSE barometer Sensex ended the day at 73,524, down 0.97% or 719 points. Today, it reached its lowest point of the day, 73,318. After reaching a low of 23,070 in intraday trading, the NSE Nifty ended the day 244 points, or 1.04%, lower at 23,123. The Nifty Smallcap 100 and Nifty Midcap 100 indices fell 1.92% and 1.40%, respectively, indicating widespread selling.

Nifty Healthcare was the sole sector in the green, as Nifty Auto, Nifty Metals, Nifty IT, Nifty Realty, and Nifty Oil & Gas all saw significant sell-offs. The Indian stock market crashed today for the following five main reasons: 1. Global Markets Tumble

Asian markets tumbled, and the broader MSCI Asia ex-Japan index slipped 2.7%. 2. US-Iran War The war in the Middle East escalated after Israel struck military targets in western and central Iran on Monday. A day ago, Israel had also launched strikes in the Beirut area for the first time since the US announced a truce plan for Lebanon last week. 3. Crude Oil Prices

Crude oil prices jumped after Israel’s launch of renewed strikes on Lebanon and sounds of explosions heard in Iran. The flaring conflict eroded hopes for an imminent end to the wider war and a restart to crude flows through the Strait of Hormuz. 4. US Fed Rate Hike Fears

Global markets came under selling pressure after a stronger-than-expected May jobs report in the US lifted expectations for a Federal Reserve rate hike by end-2026. 5. Technical

Nifty 50 index continues to trade below all key moving averages and maintains a lower high–lower low structure, reflecting a weak technical setup. The crucial support zone is placed around 23,100 – 23,000, which coincides with the 61.8 percent Fibonacci retracement level of the April rally.