Sensex crashes 1,700 points, Nifty falls over 500: Here's why
The Indian stock market saw a steep drop on Wednesday, March 4, 2026, with the Sensex falling over 1,700 points and the Nifty down more than 500.
Rising US-Iran tensions and a jump in crude oil prices sparked fears of inflation, wiping out ₹9 lakh crore from investors' wealth within minutes.
How this crash can impact you
If you invest or plan to start, this crash could hit your portfolio or future savings.
Higher oil prices mean India pays more for imports, which weakens the rupee (around ₹91.30-91.40 per dollar) and makes it tough for the RBI to lower interest rates—both of which can impact costs and growth.
Foreign investors pull out money as market tanks
Joint strikes by the US and Israel on Iran, and Iran's retaliatory strikes pushed Brent crude up by 12%.
Foreign investors pulled money out, banking and IT stocks struggled due to global jitters, AI-related investor concerns shook up tech shares further, adding to the pressure.
Market volatility spiked too—the India VIX shot up 19% today.