Sensex and Nifty Drop on Sept 29, 2026: Crude Oil, FPI Outflows, and the Rupee

What happened on September 29, 2026

On Tuesday, the Nifty 50 and BSE Sensex opened about 0.85 % lower, reflecting a continuation of the week‑long sell‑off that began on Monday. The drop erased roughly ₹4 lakh crore from the combined market capitalisation of BSE‑listed companies, bringing the total down to ₹474 lakh crore [TOI].

Key drivers of the decline

Higher crude oil prices – Brent futures were trading above $107 a barrel, a level that has pushed the rupee and corporate margins into a squeeze [The Hindu].

Foreign portfolio outflows – FPIs sold a record $24.6 billion of Indian equities in 2026 through August, with total foreign selling reaching ₹2.37 lakh crore [ET]. In the week leading up to September 29, FPI net selling reached ₹25.7 billion [TOI].

Rupee pressure – The currency slipped past ₹96 per dollar, hitting a two‑month low of ₹96.1450 [TOI].

Market micro‑factors – The session coincided with the monthly expiry of Nifty F&O contracts, a period that typically brings heightened volatility. The RBI’s Monetary Policy Committee was set to meet on 5–7 Oct, and markets were pricing in a rate hike [TOI].

2026 in context

According to the Economic Times, the Nifty has fallen almost 13 % so far in 2026, the steepest calendar‑year decline since 2011. While the mid‑cap and small‑cap indices have shown resilience, the IT segment has seen a 21 % slump [ET].

What the trend shows

Google Trends recorded about 50 000 searches for “sensex nifty stock market” on the day, a 1 000 % jump from the previous week [Google Trends]. Searches for “sensex today” and “nifty today” are routine checks for investors, while the spike reflects heightened market anxiety.

Looking ahead

Investors will watch the RBI’s next policy decision, the trajectory of Brent crude, and the rupee’s behaviour around the 96‑level. Domestic institutional inflows have been a stabilising factor, but the continued outflow of foreign capital remains a key risk.