Indian stock market falls sharply: Sensex drops 700 points, Nifty below 22,650

Indian stock markets fell sharply on Tuesday, with the Sensex dropping nearly 700 points and Nifty below 22,650, erasing about Rs 4 lakh crore in market value amid rising oil prices and bond yields. The selloff followed a 1.5% decline the previous day, with major stocks like Bajaj Finance, HDFC Bank, and Infosys falling over 1%. India VIX jumped 5%, and market breadth was bearish with 2,258 declines on NSE. Key factors include fading hopes for an Iran-US peace deal, Brent crude above $107 per barrel, US 10-year Treasury yields surging past 5.25%, the rupee hitting a two-month low near 96 per dollar, and sustained foreign investor outflows. Weak global cues, Nifty monthly expiry, and RBI rate hike expectations also weighed on sentiment.