- Nifty fell 150 points from day's high, trading 0.48% lower at 23,917 by 2:20 pm
- Sensex dropped 500 points, down 0.63% at 76,007 amid monthly expiry and tensions
- Most sectors fell except Metal, Energy, Defence; Realty and PSU Bank led losses
Benchmark indices, on Tuesday, have fallen from the day's high to slip into negative territory on the back of multiple reasons like the monthly expiry, and rising geopolitical tensions.
Nifty has fallen around 150 points from the day's high, and is currently trading around 0.48% lower at 23,917, while Sensex has fallen 500 points to trade 0.63% lower at 76,007, as of 2:20 pm.
Most sectors, barring Metal, Energy, and Defence are trading in red, with Nifty Realty and PSU Bank, leading the losses with cuts of over 0.7%, followed by Financial Services, and Bank.
The broader market, however, is still in the green with the Nifty Smallcap 250 up around 0.17%, and the Nifty Midcap 150 rising about 0.26%.
Here's three reasons why markets are crashing on Monday:
Monthly & Weekly Expiry
Today marks both the weekly and monthly expiry of Nifty 50 F&O contracts. Derivatives contracts expire on pre-scheduled dates every month, and these sessions often see heightened volatility, sharp price swings, increased liquidity, and rollover activity.
Under the revised framework, monthly F&O contracts for Nifty, Bank Nifty, FinNifty, MidCap Nifty, Nifty Next 50, and single-stock derivatives now expire on the last Tuesday of the month instead of the earlier last-Thursday schedule.
Such expiry sessions are typically marked by elevated trading activity as traders unwind or roll over positions. The surge in volumes can amplify intraday volatility, leading to price movements that may temporarily diverge from broader market trends.
Positive Global Cues
Asian markets ended mixed on Tuesday, with South Korean equities leading regional gains. KOSPI surged 2.55% to close at 8,047.51 after hitting a record intraday high of 8,131.15. The small-cap KOSDAQ trimmed earlier gains but still ended 0.98% higher.
In Japan, the Nikkei 225 slipped 0.25% to 64,996.09 amid profit-booking, while the broader TOPIX closed marginally lower at 3,938.46.
Australia's S&P/ASX 200 declined 0.39% to settle at 8,657.80.
Chinese equities, however, edged higher, with the CSI 300 gaining 0.53% to 4,947.85. Meanwhile, Hong Kong's Hang Seng Index was largely unchanged in volatile trading after markets reopened following Monday's public holiday.
Crude Prices Inch Toward $100
Brent Crude futures rose above $98 a barrel on Tuesday, recovering part of their recent losses as fresh US military action in southern Iran and ongoing diplomatic talks between Washington and Tehran kept markets volatile.
According to reports, the US military struck missile launch sites and vessels allegedly attempting to deploy naval mines in southern Iran. US Central Command said the operations were intended to safeguard American personnel and assets in the region.
Meanwhile, Donald Trump said negotiations with Tehran were making progress, but cautioned that further military action remained possible if talks were to collapse. The US and Iran are reportedly discussing a framework that would extend the current ceasefire by around two months. As part of the proposal, Washington could ease its blockade measures, while Tehran would reopen the Strait of Hormuz to shipping traffic.
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