Sensex Plunges 1,773 Points Amid Global Shockwaves
Mumbai — India’s stock market tumbled sharply Wednesday morning as intensifying tensions involving Israel, Iran, and the United States sent shockwaves through global financial markets.
The benchmark Bombay Stock Exchange Sensex fell 1,773 points, or 2.21%, to 78,465 in early trading. Meanwhile, the National Stock Exchange Nifty 50 dropped 549 points, or 2.21%, to open at 24,316.
Within minutes of the market opening, investors lost an estimated ₹7.93 trillion (roughly $95 billion) in market capitalization, reflecting widespread panic selling.
Volatility surged sharply, with the India VIX — often referred to as the market’s “fear gauge” — jumping 25% to 17.13.
Oil Prices Spike on Strait of Hormuz Fears
Investor sentiment was further rattled by a surge in crude oil prices amid fears of supply disruptions through the Strait of Hormuz, a critical global oil transit route. Brent crude climbed near $81 per barrel.
India, which imports roughly 85% of its crude oil needs, is particularly vulnerable to rising energy costs. Higher oil prices threaten to widen the country’s trade deficit and fuel inflationary pressures.
Broad-Based Selloff Across Sectors
Nearly all major sectoral indices traded in negative territory. Metals fell 3.18%, real estate dropped 3.04%, while auto, banking, and oil & gas stocks each declined more than 2.5%.
The only sector showing resilience was IT, which edged up 0.27%, benefiting from a weaker rupee against the dollar — a positive factor for export-driven technology companies.
Asian Markets Also Hit Hard
The sell-off was not limited to India. South Korea’s KOSPI plunged as much as 12% in early trade, triggering a temporary halt. Japan’s Nikkei 225 closed down 4.17%.
Analysts Warn of Continued Volatility
Market analysts at HDFC Securities said aggressive selling by foreign institutional investors, combined with the spike in crude oil prices, has severely dented investor confidence. They warned that volatility is likely to persist until geopolitical tensions ease.
For now, global markets remain on edge as investors closely monitor developments in the Middle East, with energy prices and capital flows likely to dictate the near-term direction of equities worldwide.