Markets Tumble as Israel-Iran Conflict Escalates; Sensex Falls Over 1,200 Points, Nifty Hits 3-Week Low

Indian equity markets came under intense selling pressure on Friday as rising geopolitical tensions in the Middle East triggered a wave of global risk aversion. The BSE Sensex nosedived over 1,200 points intraday before closing 901 points lower, while the NSE Nifty sank to a three-week low, mirroring the panic across global markets.

Key Highlights

• Sensex dropped 901.41 points or 1.10% to close at 80,790.56
• Nifty fell 271.55 points or 1.09% to settle at 24,616.65
• Profit-booking intensified as Middle East tensions flared
• Foreign institutional investors (FIIs) also contributed to the sell-off

What Triggered the Market Fall?

• Israel’s Military Strikes on Iran

Markets opened deep in the red following Israel’s pre-dawn airstrikes on strategic Iranian military and nuclear sites. The attack, dubbed “Operation Rising Lion,” reportedly resulted in the deaths of senior Iranian commanders and nuclear scientists.

Iran’s Supreme Leader Ayatollah Ali Khamenei vowed “severe punishment,” raising the specter of prolonged retaliation and regional instability. The incident is being viewed as one of the most significant military escalations in the region since the 1980s Iran-Iraq war.

• Crude Oil Surge

Brent crude futures surged over 9%, touching $75.61 per barrel, while WTI hovered near $74.39. The spike fueled concerns over supply disruptions and margin pressures for companies heavily reliant on crude, including OMCs, paint, and tyre manufacturers.

• Weak Global Cues

The risk-off sentiment was amplified by falling futures on Wall Street and weak openings across Asia and Europe. Global investors scrambled to reduce exposure to equities amid fears of inflation, stagflation, and slower growth.

Volatility Spikes: India VIX Surges 14%

The India VIX, a key indicator of near-term volatility, shot up by 14% in early trade to touch 15.98, before settling at 15.15 by 9:39 AM still up 8.21%. The spike reflects the nervousness and defensive positioning by traders as the conflict unfolds.

Stay tuned for real-time updates on geopolitical and market movements.

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