Sensex Crashes 1,635 Points on FY26's Last Day — What Happened
Jaspal Singh
Author
FY26 Ends with a Market Crash
The Indian stock market ended the last trading day of FY 2025-26 with brutal losses. The Sensex plunged 1,635 points (2.22%) to close at 71,947, while the Nifty50 fell 488 points (2.14%) to settle at 22,331. It was the worst financial year-end close in recent memory.
The sell-off wasn't limited to large-caps. Midcap and smallcap indices fell nearly 2.7% each, with over 1,123 stocks hitting 52-week lows on the NSE — including names like IRCTC, Patanjali Foods, Mazagon Dock, and Cochin Shipyard.
Why Did Markets Crash Today?
1. US-Iran War Enters 5th Week
The protracted conflict in the Middle East continues to fuel uncertainty. With the Strait of Hormuz under threat, global oil supply is disrupted and energy prices remain elevated. Brent crude is trading above $108 per barrel — a level that directly hurts India as one of the world's largest oil importers.
2. RBI's Forex Shock — Bank Stocks Hammered
The RBI's surprise directive capping banks' net open rupee positions at $100 million triggered a banking bloodbath. The Nifty Bank index crashed 3.82%, with HDFC Bank, SBI, Axis Bank, Kotak Mahindra Bank, and Bajaj Finance among the top losers — falling up to 5%.
Market estimates suggest $40 billion in long-dollar positions will need to be unwound in the coming days, creating mark-to-market losses for banks.
3. F&O Expiry Amplified Volatility
Today was also the monthly Nifty F&O expiry and the last session of FY26. Traders rolling over positions added to the already volatile mix. The India VIX surged 4% to 27.88, indicating extreme fear in the market.
Biggest Losers and Gainers
| Top Losers (Sensex) | Fall |
|---|---|
| Bajaj Finance | -5% |
| State Bank of India | -4.8% |
| IndiGo | -4.5% |
| Bajaj Finserv | -4.3% |
| Axis Bank | -4.1% |
Only Tech Mahindra (+1.65%) and PowerGrid (+0.8%) managed to end in the green on the Sensex.
₹10 Lakh Crore Wiped Out
The total market capitalisation of BSE-listed firms fell by nearly ₹10 lakh crore in a single session — from ₹422 lakh crore to ₹412.43 lakh crore. For context, that's roughly the GDP of a small country, gone in one day.
What Should Investors Do?
If you're a long-term SIP investor, this crash is not a reason to panic. Corrections driven by geopolitical events are typically temporary. Here's what makes sense:
- Continue your SIPs — market dips are when you accumulate more units at lower prices
- Avoid panic selling — selling at a low locks in losses permanently
- Review, don't react — check if your asset allocation is still balanced
- If you have surplus cash — this could be an opportunity to invest via lump sum in quality large-cap funds
Use our SIP Calculator to see how staying invested through crashes actually works in your favour over time.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Stock market investments are subject to market risks. Past performance does not guarantee future results. Consult a SEBI-registered financial advisor before making investment decisions.
Written by
Jaspal Singh
Founder & Editor
Personal finance writer helping Indians make smarter money decisions through clear, jargon-free guides on taxes, investments, and budgeting.
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