Stock Market: Sensex and Nifty Tumble Amid Global Selloff on Iran-Israel Strikes

Stock market news: Indian benchmark indices opened sharply lower on Monday as an escalation of hostilities between Israel and Iran triggered a flight from risk assets across Asia and sent crude oil prices surging past $96 a barrel.

The BSE Sensex fell 821 points, or 1.11 per cent, to 73,421.61 in early trade, while the Nifty 50 dropped 286 points, or 1.22 per cent, to open at 23,080.70. The Bank Nifty was not spared, declining 642 points, or 1.18 per cent, to 53,853.45. Selling was broad-based, with the Nifty Smallcap 100 and Midcap 100 indices each losing more than one per cent.

Sectoral performance reflected the deterioration in global risk appetite. The Nifty IT, Metals, Auto and Realty indices slumped more than one and a half per cent each. Only the Media and Pharma indices managed to trade in positive territory.

Global markets tumble on twin shocks

The selloff in Mumbai mirrored a brutal session across Asia, where Japan's Nikkei tumbled 3.8 per cent, led by a collapse in AI-linked stocks, and South Korea's Kospi fell 4.8 per cent after briefly dropping eight per cent. Hong Kong's Hang Seng slid nearly two per cent, while mainland China's CSI 300 lost one and a half per cent. The broader MSCI Asia ex-Japan index slipped 2.7 per cent.

Asian losses followed a weak handover from Wall Street, where the tech-heavy Nasdaq suffered its largest one-day percentage loss since April 2025 on Friday, plunging 4.18 per cent. The S&P 500 fell 2.64 per cent and the Dow Jones Industrial Average dropped 695 points. US futures pointed to further losses at the reopening.

Israel-Iran hostilities reignite

The immediate catalyst for the market turmoil was a sharp escalation in the Middle East. Israel struck military targets in western and central Iran on Monday, a day after launching attacks in the Beirut area for the first time since the United States announced a truce plan for Lebanon last week. Iran responded by firing a salvo of missiles at Israeli targets, undermining efforts to revive US-Iran peace talks. President Donald Trump nevertheless insisted that an agreement to end the wider war remained within reach.

Oil surge raises inflationary pressure

The renewed fighting dashed any remaining hopes of an imminent ceasefire or a resumption of crude flows through the Strait of Hormuz. Brent crude futures rallied 3.39 per cent to $96.24 a barrel, while US crude rose 3.17 per cent to $93.41. Oil prices have now climbed more than 50 per cent since March.

The surge poses a particular threat to India, which meets the bulk of its energy needs through imports. A higher oil bill will worsen the country's balance of payments, put downward pressure on the rupee and complicate the inflation outlook for the Reserve Bank of India.