Stock Markets Tumble as Sensex Falls 845 Points; Iran-US Peace Deal Collapses, Oil Spikes

Indian equity markets witnessed a sharp decline in early trading on Monday, with benchmark indices falling heavily amid rising global tensions and surging crude oil prices linked to the ongoing West Asia conflict. The 30-share BSE Sensex plunged more than 1,000 points during the opening session before trimming some losses, while the 50-share Nifty 50 also slipped significantly as investor sentiment weakened across sectors.

In early trade, the Sensex dropped 845.68 points to 76,482.51, while the Nifty declined 237.90 points to 23,936.85. Market analysts attributed the fall primarily to renewed geopolitical uncertainty after peace negotiations between the United States and Iran failed to produce a breakthrough. Investor concerns intensified following comments by Donald Trump rejecting Iran’s response to a proposed peace framework, raising fears of prolonged instability in the region and possible disruptions to global oil supplies.

Among the biggest losers on the Sensex were Titan Company, InterGlobe Aviation, State Bank of India, Bharti Airtel, and Mahindra & Mahindra. Only a few stocks, including NTPC and HCL Technologies, managed to trade in positive territory during the volatile session.

Also Read: Nifty Faces Crucial Resistance Near 24,350 Ahead Of Monday Trading Session

Global crude prices rose sharply after concerns resurfaced over the security of supply routes in the Middle East, particularly around the Strait of Hormuz. Brent crude, the international oil benchmark, traded above USD 105 per barrel, significantly increasing worries over India’s import bill and inflationary pressures. Market experts warned that sustained high oil prices could widen India’s current account deficit and create further pressure on the rupee and domestic economic growth.

Analysts also pointed to recent remarks by Prime Minister Narendra Modi as another factor influencing investor sentiment. Speaking at a rally in Hyderabad, the prime minister urged citizens to reduce fuel consumption; postpone non-essential foreign travel and gold purchases; and adopt measures such as carpooling, metro usage, electric vehicles, and work-from-home arrangements to conserve foreign exchange amid the West Asia crisis. His comments were widely interpreted as a sign of growing government concern over the economic impact of rising oil prices.

Asian markets showed a mixed trend during the session, with Japan’s Nikkei and Hong Kong’s Hang Seng trading lower, while South Korea’s Kospi and China’s Shanghai Composite posted gains. Despite positive closing trends in US markets on Friday, Indian equities remained under pressure due to domestic economic concerns and geopolitical uncertainty. Investors are expected to closely monitor developments in the Middle East, crude oil movements, and policy responses from the Indian government in the coming days as market volatility continues.

Also Read: Gold, Silver Likely To Stay Range-Bound Amid US-Iran Peace Negotiations