Markets Crash as Nifty Plunges 177 Points, Sensex Tanks 700 Amid Rising US-Iran Conflict

Mumbai, June 23 –
The Indian stock market opened on a sharply negative note today, with the Nifty down by 177 points and the Sensex losing over 700 points in early trade. This dramatic dip comes on the heels of escalating geopolitical tensions between the United States and Iran, triggering global risk-off sentiment and pushing crude oil prices above $79 per barrel.

Geopolitical Tensions Spark Market Panic

Global equity markets have been rattled after reports of intensified military aggression in the Middle East. With the conflict between the US and Iran worsening, investors are showing clear signs of flight to safety. As a result, Indian markets mirrored global uncertainty, with the Nifty down significantly in morning trading.

The Sensex opened at 76,100 levels and quickly tumbled to 75,400 within the first hour of trading, shedding more than 700 points. Similarly, the Nifty opened below the crucial 23,300-mark, plummeting 177 points to trade around 23,150.

Crude Oil Spike Adds to Economic Worries

The ongoing Middle East crisis is also fueling fears of a supply shock in crude oil, with Brent crude prices surging past the $79 per barrel mark. India, being a net importer of oil, is particularly vulnerable to such price spikes. Rising crude oil costs typically translate into higher input costs for industries, leading to inflationary pressures.

The spike in oil prices has particularly affected sectors such as aviation, oil marketing companies, and paint manufacturers, where raw material costs are directly impacted by global oil prices.

Sector-Wise Market Performance

Among the key indices, the Nifty Bank, Nifty Auto, and Nifty FMCG all witnessed heavy selling. Banking stocks were under immense pressure due to fear of rising bond yields and weakening investor confidence. PSU banks like SBI and Bank of Baroda lost nearly 2% each, contributing to the Nifty down trajectory.

IT stocks, often seen as defensive during market volatility, showed relative strength, but even heavyweights like TCS and Infosys couldn’t prevent the broader market from slipping.

Foreign Institutional Investors Turn Cautious

Foreign Institutional Investors (FIIs), who have been instrumental in fueling the Indian market rally in recent months, have turned cautious. Early data indicates a net outflow of funds from emerging markets, with India seeing significant capital pullback.

This shift in sentiment is likely to add more downward pressure on the indices if geopolitical risks persist in the coming weeks.

Market Analysts React

According to market expert Anil Mehta, “The current situation is highly fragile. If tensions continue to rise in the Middle East, we could see Nifty down by another 300–400 points in the short term. Investors are advised to avoid high-leverage positions.”

Another analyst, Ritu Desai, commented, “Crude prices breaching $79 is a warning signal for the Indian economy. It directly impacts the fiscal deficit and the rupee, which may face downward pressure.”

Rupee Weakens Against US Dollar

The Indian rupee also showed signs of stress, opening at 83.65 against the US dollar and weakening further during the day. Rising oil prices and risk-averse sentiment among FIIs contributed to the currency depreciation.

A weaker rupee not only raises import costs but also increases the current account deficit, further dampening investor mood.

What Should Investors Do?

With Nifty down and market volatility on the rise, experts recommend sticking to fundamentally strong large-cap stocks and avoiding speculative bets. Sectors like IT, pharma, and utilities may provide relative safety until global tensions subside.

Long-term investors are advised to stay patient and not panic-sell, as geopolitical sell-offs tend to be short-lived historically.

Conclusion

The sharp drop in Sensex and Nifty down trend in early trade signal growing investor anxiety amid rising US-Iran conflict and surging crude prices. As volatility is expected to persist, cautious trading and risk management will be the key themes for the week.

Investors and traders should closely monitor global developments and crude oil trends to navigate the stormy waters ahead.