Sensex Tumbles 800 Points as Iran-Israel Clash Sends Oil Past $96

Indian equity markets suffered a sharp sell-off on Monday as fresh hostilities between Iran and Israel sent crude prices surging above $96 a barrel and sparked a global retreat from riskier assets. The benchmark BSE Sensex plunged by more than 800 points, or 1.1 per cent, to test the 73,400 level, while the NSE Nifty 50 shed over 250 points, dipping below 23,100. In the pre-market futures segment, the GIFT Nifty had already pointed to a tumultuous session, trading roughly 273 points lower.\n\nThe latest flare-up in the long-running shadow war disrupted an uneasy calm in energy markets, evoking memories of the 2022 oil shock that rattled emerging economies. Viewed from Washington, the escalation threatened to complicate diplomatic efforts and inject new inflationary pressures into a global economy still convalescing from the pandemic. Analysts in London noted that the spike in Brent crude — which intraday breached the $96 mark — immediately reignited concerns over input costs and central bank policy trajectories.\n\nSelling pressure was uniformly distributed, with no major sector spared. Realty stocks led the declines, losing nearly 2 per cent, while metal, automobile and information technology indices each fell more than 1 per cent. Among the heavyweights, Tata Consultancy Services, Wipro, Hindalco Industries, Tata Steel and JSW Steel were among the worst hit, alongside financial names such as Bajaj Finance and Shriram Finance. Even the broader market came under strain, with the Nifty Midcap 100 and Smallcap 100 indices caught in the downdraft.\n\nThe sell-off reflects a deeper recalibration of risk appetite, as fund managers assess the probability of a prolonged disruption in the Strait of Hormuz — a chokepoint for a fifth of global oil supply. With no immediate diplomatic off-ramp in sight, market participants are bracing for heightened volatility. Analysts in Mumbai cautioned that should crude sustain above $95, it would not only widen India’s import bill but also constrain the Reserve Bank’s room to ease — a scenario that could weigh on corporate earnings and delay the much-anticipated capital expenditure cycle.