# Sensex plunges 850 points: 7 key reasons behind $60 billion market rout Oil prices and global tensions hammer Indian stock markets. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-24 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/6be36a4e-6d70-42db-bb15-8d3f983be9aa ## Behind the sharp decline The Sensex index extended losses for the fifth consecutive session, dropping over 850 points. Oil prices above $100 per barrel, FII selling, and global tensions negatively impacted market sentiment. Total market capitalization eroded by ₹5 trillion. ## Iran-US tension impact Houthi attacks on Saudi oil tankers in the Red Sea escalated regional tensions. Risks of Bab-el-Mandeb strait closure raised concerns about global oil supply, pushing Brent crude above $100. Geopolitical risks are weighing on investor confidence. ## Oil price shockwaves Oil prices surged above $100 for the first time since May following the attacks. Goldman Sachs warned Brent could reach $120 if Hormuz disruptions persist. Rising energy costs are pressuring India's current account balance and currency stability. ## Foreign investor exodus Foreign institutional investors (FIIs) net sold ₹2,999 crore worth of equities on Thursday. Sustained selling since mid-July is draining market liquidity. The rupee's depreciation against the dollar is further triggering foreign outflows. ## Global market ripple effects Asian markets saw broad declines, with South Korea's Kospi plunging 6%. Japan's Nikkei fell 3% while Taiwan's index dropped over 2%. Rising Fed rate hike expectations are dampening global risk appetite across equity markets. ## What lies ahead Analysts expect continued volatility due to oil prices and geopolitical tensions. The rupee risks testing 96.90 levels while rising US Treasury yields pressure global equities. No near-term recovery signals are visible amid these macroeconomic headwinds. ## Sources covering this story - https://economictimes.indiatimes.com/markets/stocks/news/why-is-market-falling-today-sensex-drops-over-700-points-nifty-below-23700-7-key-factors-behind-d-street-selloff/articleshow/132595743.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._