Indian stock markets faced a significant downturn as geopolitical tensions in the Middle East sparked a global selloff, leading to a surge in crude oil prices. The BSE Sensex dropped by 719 points, closing at 73,524, while the Nifty 50 lost 243 points, hitting its lowest point in nearly two months. This decline was seen across various sectors, with most major indices finishing in negative territory.
The market turmoil was primarily driven by the escalating conflict between Iran and Israel, which has heightened fears of broader regional instability and potential disruptions to global energy supplies. As a result, Brent crude prices rose sharply to around $97 per barrel, fueling concerns about inflation and increasing corporate expenses.
Investors showed increased risk aversion, leading to notable declines in financial, IT, and broader mid-cap and small-cap stocks. The small-cap and mid-cap indices experienced sharper drops compared to the primary benchmarks, indicating that the pressure extended across wider market segments.
Asian markets were not spared from the selloff, with significant losses recorded in major indices across South Korea, Japan, and other Asia-Pacific regions. The global risk-off sentiment particularly impacted technology and AI-related stocks, contributing to the widespread market declines.
Analysts have warned that the combination of rising oil prices and geopolitical uncertainty is likely to keep market volatility elevated in the coming period. Investors are expected to continue reassessing their growth and inflation expectations in light of these developments.