Indian stock market crashed in early trade on Monday, September 28, as key equity indices--Sensex and Nifty--plunged over a per cent. Last seen, BSE Sensex, the 30-share index, were trading at 72,896.46, down 1.35 per cent or 999.28 points. Meanwhile, Nifty50 was quoted at 22,828, down 1.35 per cent or 312.50 points.
What Is Dragging Stock Market Today: 3 Key Factors
1. Crude Prices: According to an analyst, the market traded sharply lower with a cautious tone prevailing amid rising crude oil prices and renewed tensions surrounding the U.S.-Iran conflict.
"The weakness has been broad-based, with selling pressure visible across major sectors and the broader market, intensifying downside pressure on domestic benchmarks," said Ponmudi R, CEO of Enrich Money.
Crude oil remains a key concern, with WTI crude trading around the $94-per-barrel mark, he added.
2. Indian Rupee: The domestic currency--Rupee--whowed weakness in early trade but remains within its recent trading range, currently around the ₹95.90-per-dollar level.
"Persistent oil-price pressures and foreign fund outflows remain key factors influencing the currency," Ponmudi added.
3. Weak Global Cues: Asian peers traded lower, weighing on sentiment in the Indian market. South Korea's KOSPI, Japan's Nikkei 225 index, and Shanghai's SSE Composite index traded lower,
Crude Prices Today
At the time of writing, Brent crude, the global oil benchmark, was trading 2.27 per cent higher at USD 106.7 per barrel.