Sensex Falls Over 1,000 Points, Nifty Slips Below 24,900 As US-Israel Strikes On Iran; Impacts Oil Price

Indian equities traded lower as Middle East tensions pushed crude prices up, weighing on energy-linked sectors and guiding cautious investor behaviour amid global risk-off sentiment.

Indian equities slid sharply in early trade on Monday as fresh Middle East attacks shook global markets and lifted crude oil prices. Benchmark indices tracked the risk-off mood after the US-Israel strikes in Iran, with traders bracing for further volatility in commodities, currencies and cross-border capital flows.

By 9:16 AM, Nifty50 had slipped 313 points, or 1.24 per cent, to 24,866.00, dropping below 24,900. BSE Sensex fell 1,061 points, or 1.30 per cent, to 80,226.63. The slide reflected growing concern that the conflict could squeeze energy supplies and unsettle broader risk sentiment.

Stock market crash, Nifty50, BSE Sensex: Key index moves and sector impact

Analysts highlighted that sectors tied closely to crude oil costs may face the most pressure from this stock market crash. Oil marketing companies, paint manufacturers, tyre makers, aviation firms and several chemical producers could see margins stressed if input prices stay elevated for long, though direct beneficiaries stand elsewhere in the stock market.

Upstream energy firms such as ONGC and Oil India may benefit from stronger realisations under higher crude prices in this stock market phase. Defence-related counters including HAL and BEL could also attract buyers, as investors often favour defence spending themes during geopolitical flare-ups that unsettle the wider stock market.

Stock market crash, Nifty50, BSE Sensex and global market cues

Weakness was visible across Asia as well, where regional equities dropped about 1.1 per cent, deepening the stock market crash mood. Futures for major US and European indices also declined after the US-Israeli military action in Iran. Brent crude briefly jumped nearly 13 per cent as the effective closure of the Strait of Hormuz rattled traders.

Crude prices kept climbing on Monday, extending gains beyond 8 per cent and touching multi-month highs that weigh on the stock market. Escalating attacks involving Iran and Israel damaged tankers and disrupted flows along a key oil corridor. Gold prices rose by up to 2 per cent after strikes that killed Supreme Leader Ayatollah Ali Khamenei.

Flows also showed mixed behaviour during this stock market crash phase. Foreign portfolio investors sold Indian shares worth Rs 7,536 crore on Friday. Domestic institutional investors cushioned the hit, turning net buyers of Rs 12,293 crore. Their purchases absorbed a notable part of the overseas selling in frontline counters.

(Disclaimer: Inputs taken from - The Times of India)