Indian stock markets tumbled sharply on Monday, with benchmark indices BSE Sensex and Nifty 50 falling nearly 3 per cent each amid escalating geopolitical tensions in the Middle East. The sell-off extended last week’s losses as investors turned cautious following the intensifying conflict involving Iran, the United States, and Israel, which has heightened global risk aversion and triggered volatility across financial markets.
As of 9:45 am, the Nifty 50 declined 2.84 per cent to 23,756.20, slipping below the crucial 24,000 mark, while the Nifty Bank plunged 3.93 per cent to 55,511, leading losses among key indices. The BSE Sensex also dropped 2,178 points, or 2.81 per cent, to trade at 76,682.65. The sharp fall reflected heavy selling in financial stocks as investors reduced exposure to riskier assets amid rising global uncertainty.
The weakness was visible across the broader market as well. The Nifty Next 50 dropped 3.12 per cent, while the Nifty Midcap 100 fell 3 per cent and the Nifty Smallcap 100 declined 2.98 per cent, indicating a broad-based risk-off sentiment across large-, mid- and small-cap segments.
Sectorally, banking stocks witnessed the steepest decline. The Nifty PSU Bank index tumbled 5.27 per cent, while the Nifty Private Bank index fell 3.5 per cent, dragging the financial space lower. The Nifty Auto index also declined sharply by 3.94 per cent, followed by the Nifty Metal index which lost 3 per cent. Defensive sectors showed relatively better resilience, with the Nifty IT index declining 1.37 per cent, the Nifty Pharma index falling 1.65 per cent, and the Nifty FMCG index dropping 2.27 per cent.
Meanwhile, the Indian Rupee weakened sharply on Monday, declining by 40 paise to hit a fresh all-time low of 92.22 against the US dollar amid the escalating geopolitical tensions that pushed crude oil prices above $115 per barrel. The currency had already touched a record low of 92.3025 last week.
The surge in oil prices—up more than 20 per cent—triggered a broad-based sell-off in Asian stocks and currencies, as investors grew increasingly concerned about the economic impact of the deepening conflict in the Middle East. Market volatility also spiked sharply, with the India VIX, often referred to as the market’s fear gauge, jumping 21.6 per cent to 24.18, signalling heightened uncertainty and nervousness among investors.