Sensex crashes 1,450 points after Trump escalates Iran threat
Indian stock markets witnessed a major crash in early trade today, with the BSE Sensex plummeting over 1,400 points and the Nifty 50 falling below the crucial mark of 22,250.
The sharp fall was triggered by rising tensions after US President Donald Trump warned of further military action against Iran within the next few weeks. The sell-off was broad-based across sectors with banking and financial stocks leading the decline.
Nifty 50 slips nearly 2%
The BSE Sensex plunged 1,454.33 points or 1.99% to 71,679.99 at 9:16am. The index hit an intraday low of 71,613.52 amid broad-based selling across sectors. The Nifty 50 mirrored the fall with a decline of 446 points or nearly 2% to trade below the crucial mark of22,250 with all its constituents trading in red indicating a decisive risk-off mood in the market.
Banking and financial stocks lead fall
Investor anxiety was further fueled by a spike in Brent crude prices to around $105 per barrel, raising fears of inflation and India's import bill. The sell-off was broad-based with heavyweights and sectoral leaders taking a hit. Banking and financial stocks led the fall with shares of major lenders falling between 1.7% and nearly 3%. IT and energy index heavyweights also slipped while capital goods, metals, auto stocks saw deeper cuts amid global growth concerns.
Aviation, pharmaceuticals among worst-hit sectors
Among the worst-hit sectors were aviation, pharmaceuticals, and infrastructure names with declines extending up to nearly 5% in early trade. The market breadth was decisively negative with all Nifty 50 stocks trading lower and no gainers recorded at the time of writing. The absence of defensive buying signals a broader retreat by investors amid rising uncertainty over geopolitical tensions and crude oil price fluctuations.
Foreign investors continue to sell Indian equities
The sharp fall also follows heavy selling by foreign portfolio investors (FPIs), who offloaded equities worth ₹83.31 billion in the previous session. Domestic institutional investors (DIIs), however, provided partial support with net purchases of ₹71.72 billion. The market's reaction to these developments highlights the complex interplay between global geopolitical events and domestic investor sentiment in shaping India's financial landscape.