Why is market falling today? Sensex drops 600 points, Nifty below 24,200. 4 factors behind the selloff

Published 20 July 2026 · finance

The Indian stock market traded in the deep red on Monday, with Sensex and Nifty falling up to 0.8% after recording sharp gains in the

The Indian stock market traded in the deep red on Monday, with Sensex and Nifty falling up to 0.8% after recording sharp gains in the previous session as Iran-US war escalations and rising oil prices spooked investors.Sensex dropped 575 points to 77,576, while Nifty 50 declined over 142 points to 24,190 during Monday's session. This came as India VIX, which measures volatility in the market, gained more than 2% to 13.15.Tech Mahindra, Bharti Airtel, and ICICI Bank shares gained more than 1% to lead gains on Sensex, while Axis Bank and HDFC Bank shares crashed around 5% each to lead losses. Broader markets also slipped into the red, with Nifty Midcap 100 and Nifty Smallcap 100 trading with marginal losses. Sectorally, Nifty Private Bank index crashed more than 2% to lead losses.

Nifty Realty and Nifty Financial Services also dropped more than 1% each. Nifty PSU Bank index meanwhile jumped over 1%.The overall market breadth however was slightly positive, with NSE seeing 1,355 advances and 1,246 declines, while 116 stocks remained unchanged.Here are six key factors that are pushing the stock market down today: 1) Iran-US war escalationsThe conflict between Iran and the US continued to escalate further over the weekend. The US conducted a ninth straight night of attacks against Iran, while US allies Kuwait and Bahrain reported more Iranian strikes.The Islamic Revolutionary Guard Corps said on Monday that two oil tankers ⁠had exploded and been immobilised after attempting to transit what it described as an unsafe southern route through the Strait of Hormuz, alleging they had been encouraged by the U.S. military to use the passage.2) Oil jumps above $90/barrelAs a result of the escalating Iran-US war, oil prices sharply jumped.

Brent crude futures gained more than 2%, to $90.19, touching the highest since June 11 and extending gains after rising 15.9% last week, its biggest weekly gain since April.US West Texas Intermediate crude was at $84.20 a barrel, up more than 2% to the highest level ⁠since ⁠June 12. The rising oil prices comes as the raging conflict restricted oil shipments through the Strait of Hormuz, a critical waterway that accounted for 20% of daily global oil and gas supply shipments before the war.3) Weak global cuesThe bearish sentiment on Dalal Street comes amid an overall global market downturn. Japan’s Nikkei and South Korea’s Kospi crashed more than 4% each on Monday morning. Taiwan Weighted meanwhile was trading in the red with marginal losses.Wall Street also recorded a sharp downturn in the previous session.