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Indian equities fell sharply Thursday due to rising global risk aversion amid the intensifying Iran-US-Israel war. Nifty 50 declined 2.84%, before recovering sharply.
Stock Market Crash Today.
Why Is Share Market Falling Today? Indian equity benchmarks ended with a sharp recovery from the day’s low on Monday as broad-based selling across sectors weighed on sentiment, with banking, auto and PSU bank stocks leading the decline while IT and healthcare stocks showed relative resilience.
The Nifty 50 closed at 24,005.80, down 1.82%, after hitting an intraday low of 23,697.80, marking its weakest level in more than a month. The index opened at 23,868, attempted a mild recovery during the session, but selling pressure persisted throughout the day.
The Sensex ended the day with a loss of 1,352.74 points or 1.71% at 77,566.16.
In the morning trade, the Nifty 50 had declined 2.84% to close at 23,756.20, slipping below the 24,000 mark, while the Bank Nifty plunged 3.93% to 55,511, leading losses among key indices. The BSE Sensex also declined 2,178 points or 2.81% to trade at 76,682.65. The fall reflects heavy selling in financial stocks and rising volatility in global markets.
Broader markets remained under pressure during the day. The Nifty Next 50 ended the day with a 2.02% decline, while the Nifty Midcap 100 fell 1.95% and the Nifty Smallcap 100 slipped 1.98%, indicating widespread risk-off sentiment across the market.
Volatility surged sharply, with India VIX jumping 17.6% to 23.39, signalling heightened uncertainty and nervousness among traders.
Banking stocks were among the biggest laggards. The Nifty Bank index dropped 3.08% to 56,001, while the Nifty PSU Bank index fell 3.73%, reflecting heavy selling in financial stocks. The Nifty Private Bank index also declined 2.89%.
Auto stocks witnessed the steepest sectoral decline. The Nifty Auto index plunged 4.10%, making it the worst-performing sector during the session.
Metal and oil & gas stocks also remained under pressure, with the Nifty Metal index falling 2.60% and the Nifty Oil & Gas index declining 2.57%, amid concerns over global commodity volatility.
On the other hand, defensive sectors showed relative strength. The Nifty IT index ended largely flat with a marginal gain of 0.07%, while the Nifty Pharma index slipped only 0.20%, indicating some defensive buying.
The sell-off comes after the Nifty had touched a record high of 26,373.20 earlier this year, and the index is now trading nearly 9% below its peak, reflecting the ongoing correction in the market.
Market participants are also closely watching volatility levels, as the sharp spike in India VIX suggests traders are bracing for continued swings in the near term.
Oil prices spiked after the intensifying conflict involving the United States and Iran raised fears of tighter global supply and potential disruptions to shipping through the Strait of Hormuz. Crude prices climbed to their highest levels since July 2022.
The global benchmark Brent Crude Oil jumped 19.81% to $111.05 per barrel, while West Texas Intermediate Crude Oil futures surged 22.26% to $111.13 per barrel.
On Friday, Indian markets had already closed sharply lower amid mounting geopolitical concerns. The BSE Sensex plunged 1,097 points, or 1.37%, to settle at 78,918.90, while the Nifty 50 fell 315.45 points, or 1.27%, to close at 24,450.45, slipping below the 24,500 mark.
Key Factors behind fall in market today
Escalating Iran-US-Israel War
The war between Iran and the US-Israel has intensified during the weekends. The war’s toll on civilian targets grew early Monday as Bahrain accused Iran of striking a desalination plant vital to drinking water supplies, and oil depots in Tehran smoldered following overnight Israeli strikes.
Crude Crosses $115
Crude oil prices on Monday surged above $115 per barrel as the Iran war intensified, threatening production and shipping in the Middle East.
The price for a barrel of Brent crude, the international standard, surged to $115.31, up 24% from its Friday closing price of $92.69. West Texas Intermediate, the light, sweet crude oil produced in the United States, was selling for $116.33 a barrel. That’s 28% higher than its close Friday at $90.90.
V K Vijayakumar, chief investment strategist, Geojit Investments Limited, said, “Brent crude has spiked above $115 delivering a big oil shock to economies and markets. Big oil importers like India will be hit hard if the West Asian conflict lingers long and crude price remains high. The market will price-in the economic consequences of this oil shock. Inflation will certainly move up whether the oil price hike is passed on to consumers or not.”
Rupee At All-Time Low
The Indian rupee on Monday declined by 40 paise to hit a fresh all-time low of 92.22 against the US dollar, amid the escalating Iran-US war that pushed crude oil prices above $115 per barrel.
The currency had declined to a record low of 92.3025 last week. An over 20% jump in oil prices triggered a broad-based selloff in Asian stocks and currencies on Monday as investors fretted over the deepening conflict in the Middle East.
Fear Index Surges 21.6%
Market volatility surged sharply on Monday, with India VIX jumping 21.6% to 24.18, signalling rising uncertainty and heightened nervousness among investors.
Rising Bond Yields
Global bond markets also reacted to the oil shock. Yields on US 10-Year Treasury Note climbed to around 4.20%, the highest level since February, as investors worried that higher oil prices could push inflation higher and delay interest-rate cuts by the Federal Reserve. Rising bond yields tend to make fixed-income assets more attractive relative to equities, putting additional pressure on stock markets.
Persistent FII Selling
Foreign investors continued to offload Indian equities, further weakening sentiment. Foreign portfolio investors sold more than ₹21,800 crore worth of Indian equities during the first week of March, according to market data. Vijayakumar said sustained selling has been driven by concerns over the Middle East conflict, a weakening rupee, and India’s vulnerability to rising crude prices.
Weak Global Cues
Global markets also reflected the rising risk aversion. In Asia, Japan’s Nikkei 225 plunged over 6%, while South Korea’s Kospi Index fell nearly 8%. Hong Kong’s Hang Seng Index declined around 3%, and China’s Shanghai Composite Index slipped more than 1%.
March 09, 2026, 09:49 IST
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