Indian equity markets witnessed a significant downturn as escalating geopolitical tensions in the Middle East led to a global selloff and a surge in crude oil prices. The BSE Sensex dropped by 719 points to settle at 73,524, while the Nifty 50 declined by 243 points, hitting its lowest point in almost two months. This decline was evident across various sectors, with most major indices ending the day in negative territory.
The market sentiment was heavily influenced by the intensifying conflict between Iran and Israel, which has heightened fears of broader regional instability and possible disruptions to global energy supplies. This geopolitical strife pushed Brent crude prices up to approximately $97 per barrel, exacerbating concerns over inflation and rising corporate costs.
Financial and IT stocks, along with broader mid-cap and small-cap equities, experienced significant losses, highlighting increased risk aversion among investors. The small-cap and mid-cap indices saw sharper declines than the main benchmarks, pointing to pressure across the wider market segments.
Asian markets were not spared from the downturn, as major indices in South Korea, Japan, and the broader Asia-Pacific region also faced heavy losses. This was largely due to the global risk-off sentiment, with technology and AI-related stocks particularly affected.
Analysts suggest that the combination of rising oil prices and geopolitical uncertainty is likely to maintain elevated market volatility in the near future. Investors are expected to continue reassessing their growth and inflation expectations amid these developments.