Sensex crashes 1,720 points as US-Iran tensions and rising oil prices shake Indian markets
PTC Web Desk: Indian stock markets opened sharply lower on Wednesday, with benchmark indices witnessing a heavy sell-off as escalating geopolitical tensions and a spike in crude oil prices rattled investor confidence.
The Sensex tumbled 1,720.89 points, or 2.14%, to 78,517.96, while the Nifty 50 dropped 521.70 points to 24,344 at 9:34 am. In early trade, investors saw a wealth erosion of nearly Rs 9.3 lakh crore.
The sharp decline comes in response to growing fears of a military conflict between the United States and Iran, raising concerns about potential disruptions in global energy supplies and overall economic stability. Asian markets opened lower following Wall Street’s losses overnight, as investors moved away from riskier assets in anticipation of further escalation affecting trade and energy flows worldwide.
India, which imports around 85% of its crude oil requirements, is particularly exposed to rising oil prices. Higher crude costs could fuel inflation, widen the trade deficit, pressure the rupee, and potentially slow economic growth, impacting corporate profitability.
Experts say markets are entering a period of heightened uncertainty due to the ongoing conflict and rising crude prices. The key concern for India is the inflationary impact and its knock-on effect on growth and corporate earnings.
If the conflict is short-lived, markets could stabilise within a few weeks.
Investor caution was evident as the VIX (volatility index) surged to its highest since June 2025. Vijayakumar advised against panic selling, suggesting investors with a long-term outlook could gradually accumulate quality stocks in sectors like banking, pharmaceuticals, automobiles and defence.
Experts say Nifty 50 needs to sustain levels above 24,500 to prevent further downside, warning that it could drop to 24,000–23,550 if bears regroup.
Selling pressure was widespread among Nifty 50 constituents in early trade. Larsen & Toubro fell 6.97%, Tata Steel 4.93%, Shriram Finance 4.57%, IndiGo 4.20%, and Adani Ports 4.05%.
Investors are now closely watching geopolitical developments and crude oil prices, which are likely to drive market sentiment in the coming days.
- PTC NEWS
