Sensex, Nifty Plunge at Opening Bell as US-Iran Clashes Intensify; Oil Nears $97

Benchmark Indian equity indices opened sharply lower on Wednesday following a severe overnight military escalation between the United States and Iran. The BSE Sensex fell nearly 700 points in early minutes, while the NSE Nifty dropped approximately 200 points as heightened geopolitical turmoil spooked global risk assets.

In the pre-opening session, the Sensex stood 540 points down at 76,397.24, and the Nifty fell over 203 points to 23,852.05. Out of the 30 Sensex constituents, Sun Pharma was the sole gainer in initial trade.

Key Drivers Behind the Market Sell-Off

• Direct Military Escalation: Overnight airstrikes carried out by the US against Iranian targets, followed by retaliatory strikes from Tehran, triggered widespread risk aversion across Asian bourses.
• Crude Oil Surge: Global benchmark Brent crude jumped roughly 2% to $96.60 per barrel, touching a six-week high and raising concerns over widening import bills, domestic inflation, and foreign fund outflows.
• Yields and Rate Worries: Soaring energy prices pushed global bond yields higher on fears of prolonged tight monetary conditions, prompting foreign investors to pull capital out of emerging markets like India.
• Early Indicators: GIFT Nifty had earlier slipped to 24,033.5 points, signaling weakness after the Nifty 50 finished Tuesday at 24,055.80.

The downturn follows Tuesday’s subdued trading session, where both benchmarks closed marginally lower amid initial jitters over West Asian tensions. The Sensex had ended Tuesday at 76,944.28 (down 12.99 points), while the Nifty slipped 24.60 points to settle at 24,055.80.