Sensex Falls 1,248 Points: Why the Market Crashed

Indian shares fell sharply on Thursday, 24 September 2026. The Sensex fell 1,247.71 points (1.67%) to 73,580.54 and the Nifty 50 fell 383.70 points (1.64%) to 23,063.10. Midcaps fell harder: the Nifty Midcap 100 lost 2.25%, and the Nifty Smallcap 100 lost 1.53%. Here is what caused the fall, what it means for your SIPs and mutual funds, and what is best avoided.

The short answer

• What happened: Sensex closed at 73,580.54 and Nifty at 23,063.10, both down about 1.6%.
• Three causes came together: crude oil above $100 a barrel, US bond yields at 5.11%, and a sharp fall in insurance and finance shares after a new IRDAI proposal.
• Foreign investors are selling: they pulled about ₹23,676 crore out of Indian shares in September up to the 19th.
• On Friday morning the market was almost flat, and crude eased on reports of US–Iran talks.
• If you invest through SIPs for 5 years or more, one bad day is not a reason to stop. If you need the money within 2–3 years, it should not be in shares at all.

Sensex and Nifty on 24 September 2026

Index	Close	Change
Sensex	73,580.54	−1,247.71 (−1.67%)
Nifty 50	23,063.10	−383.70 (−1.64%)
Nifty Midcap 100	–	−2.25%
Nifty Smallcap 100	–	−1.53%

The biggest losers on the Nifty included HDFC Life, Bajaj Finance and Axis Bank. Cipla, ONGC and NTPC were among the few gainers.

Why the market fell

1. Crude oil above $100

Brent crude jumped above $102 a barrel in morning trade, and one closing report put November Brent at about $105.62. Oil has been high since the conflict involving Iran disrupted shipping through the Strait of Hormuz. India buys most of its oil from abroad, so expensive crude means a bigger import bill, a weaker rupee and higher inflation. The rupee slipped to about 95.87 per dollar in early trade.

2. US bond yields at a multi-year high

The US 10-year Treasury yield rose to 5.11%, which one market report described as a 19-year high. When safe US bonds pay more, investors move money out of emerging markets such as India. US shares fell too: the Nasdaq lost 1.1%. This follows the US Fed’s rate hike on 16 September.

3. A shock for insurance and finance stocks

On 23 September the insurance regulator IRDAI proposed sharp cuts in commissions paid to insurance sellers. On 24 September PB Fintech (Policybazaar) fell 36% to ₹1,207.20, its biggest one-day fall, and Turtlemint fell 20%. HDFC Life was among the day’s top Nifty losers. Banks and finance companies fell as well, which dragged the whole index. Read what the proposal means for your own policies in our IRDAI commission cap explainer.

4. Foreign investors keep selling

Foreign portfolio investors (FPIs) sold a net ₹23,676 crore of Indian shares in September through the 19th, according to NSDL data, after two months of buying in July and August. Domestic institutions, which include mutual funds, have kept buying and softened the fall: they were net buyers of about ₹2,341 crore on 23 September.

What has not changed

• The triggers are mostly outside India’s daily economy: oil prices, US interest rates, foreign money flows and a draft regulatory proposal.
• The proposal is a draft. IRDAI is taking comments until 25 October 2026. It is not yet a rule.
• Your SIP units are still yours. A fall lowers the value on paper. You lose only if you sell.

What to do if you invest

Your situation	What is sensible
Monthly SIP for a goal 5+ years away	Keep it running. Each SIP instalment buys more units when prices are lower. Use the SIP calculator to see the long-run picture.
Want to invest a large lump sum	Consider splitting it over several months instead of one day. See the lumpsum calculator.
Salary rise coming	A yearly step-up in your SIP helps most in years like this. Try the step-up SIP calculator.
Need the money within 2–3 years	Shares and equity funds can fall and stay down for years. Money for a near goal belongs in safer options such as an FD.
Retired and living off investments	Keep 1–2 years of expenses in safe deposits so you never have to sell shares in a fall.
Anxious about the fall	Check your investments less often, and never borrow to buy shares.

Mistakes to avoid in a falling market

1. Stopping SIPs after a fall. It locks in the loss and skips the cheap units.
2. Selling everything, then waiting for the “right time” to return. The best and worst days often come close together, and most people miss the recovery.
3. Chasing tips that promise to “recover losses fast”.
4. Putting all your money into one sector because it fell the most.

Frequently asked questions

Why did Sensex fall today? On 24 September 2026, oil above $100, a US 10-year yield of 5.11%, continued foreign selling and a fall in insurance and finance shares all pulled the market down. The Sensex closed 1,247.71 points lower at 73,580.54.

Is this a stock market crash? A fall of about 1.6% in a day is sharp, but it is not a crash in the sense of 2008 or March 2020, when markets fell far more in days. The bigger concern is a run of weak sessions if oil and US yields stay high.

Should I stop my SIP? For a goal at least five years away, generally no. A SIP is built to keep buying through falls. If your income has fallen or you need the money soon, that is a reason to review your plan, not the market.

Will the market fall more? Nobody can say. It depends on oil, the US Federal Reserve, foreign flows and the RBI’s policy meeting on 5–7 October.

Sources

• Business Standard, “Stock Market LIVE”, 25 September 2026: business-standard.com
• Kotak Neo, “Closing Bell Today, 24 September 2026”: kotakneo.com
• Business Standard, “Stock Market Close: RIL, financials drag Sensex 1248 pts down, Nifty at 23,063”, 24 September 2026: business-standard.com
• India TV News, “24 September 2026 Stock Market Updates”: indiatvnews.com
• Upstox, “PB Fintech crashes 36%, Turtlemint 20% as IRDAI proposes new insurance distribution rules”: upstox.com
• Business Standard, “FPIs withdraw ₹13,138 crore from equities in Sep amid global uncertainty”, 13 September 2026: business-standard.com
• NSDL FPI data to 19 September 2026, as reported by Multibagg: multibagg.ai