Indian stock markets witnessed a significant decline as concerns over escalating geopolitical tensions in the Middle East spurred a global selloff, leading to a surge in crude oil prices. On the Bombay Stock Exchange, the Sensex dropped by 719 points, closing at 73,524, while the Nifty 50 slipped 243 points, hitting its lowest mark in nearly two months. This downturn was characterized by widespread weakness across various sectors, with most major indices ending in negative territory.
The market’s downbeat mood was heavily influenced by the intensifying conflict between Iran and Israel, which has heightened fears of broader regional unrest and possible disruptions to global energy supplies. As a result, Brent crude oil prices surged to about $97 per barrel, exacerbating concerns over inflationary pressures and increased corporate expenses.
Investors showed heightened risk aversion, leading to notable declines in financial and IT stocks, as well as the broader mid-cap and small-cap segments. The sharper falls in small-cap and mid-cap indices compared to frontline benchmarks highlighted the strain in broader market segments.
These developments triggered heavy losses across Asian markets too, with major indices in South Korea, Japan, and the wider Asia-Pacific region experiencing significant declines. The global risk-off sentiment was particularly pronounced in technology and AI-related stocks.
Analysts highlighted that the combination of rising oil prices and geopolitical uncertainties is likely to maintain elevated volatility levels in the short term, as investors reassess their growth and inflation expectations.