The Indian stock market opened sharply lower on Thursday, with benchmark indices losing around 2% as investor sentiment was rattled by fresh geopolitical tensions. The NIFTY 50 closed at 22,220.55, down 456.35 points (2.01%), while the BSE Sensex fell 1,447.93 points (1.98%) to 71,686.39. Markets reacted negatively after US President Donald Trump warned in a national address that the United States would hit Iran "extremely hard" within weeks, ending hopes for a quick resolution to the conflict and raising concerns over global economic stability. The total market capitalization of all BSE-listed companies dropped by ₹9.01 trillion, falling to ₹412.47 trillion from the previous ₹421.48 trillion.
Meanwhile, the Nifty India Volatility Index (VIX) surged 6.36% to 26.60 shortly after the market opened, reflecting increased uncertainty. The index was up 4.23% at 26.07 as of 9:31 am. Investors are advised to remain cautious as geopolitical tensions continue to influence global and domestic markets. The immediate reaction was visible in global commodity prices, with crude oil benchmarks rising as the U.S. President spoke. This spike in energy costs added further pressure on Indian indices. While the indices saw a gap-up opening recently, the short-term trend remains weak. The market is now testing critical support levels that will determine the trajectory for the remainder of the week.