Sensex Crashes Over 1,300 Points as Iran-US Peace Talks Fail and Crude Oil Prices Surge

Indian stock markets extended their losses for the third consecutive trading session as rising crude oil prices and the failure of peace negotiations between the United States and Iran triggered heavy selling pressure among investors.

Benchmark indices witnessed a steep decline throughout Monday’s trading session amid growing geopolitical concerns in the Middle East and fears of rising inflation due to higher energy prices.

During early morning trade, the BSE Sensex plunged 1,370.79 points to 75,957.40. By the end of the session, the Sensex settled 1,312.91 points lower at 76,015.28, while the NSE Nifty dropped 360.30 points to close at 23,815.85.

Over the last three trading sessions since Thursday, the Nifty has fallen by more than 2 percent, while the Sensex has lost nearly 1,950 points.

Investor sentiment weakened sharply after US President Donald Trump rejected Iran’s latest response to the American peace proposal, calling it “totally unacceptable.”

Adding to market concerns, Prime Minister Narendra Modi reportedly urged citizens and industries to adopt austerity measures in response to rising economic pressures. Suggestions included conserving fuel, postponing gold purchases, limiting foreign travel, and strengthening foreign exchange reserves.

Among Sensex stocks, Titan emerged as the biggest loser, declining nearly 7 percent during the session.

Shares of InterGlobe Aviation, State Bank of India, Bharti Airtel, Eternal, and Reliance Industries also witnessed significant losses.

On the other hand, stocks including Sun Pharma, Hindustan Unilever, Adani Ports, Kotak Mahindra Bank, Axis Bank, and ICICI Bank managed to close in positive territory.

Market experts said increasing geopolitical tensions and concerns about inflation intensified the selling trend in Indian equities, causing benchmark indices to decline by more than 1.4 percent during the session.

The uncertainty surrounding crude oil prices and fears of further escalation in the Gulf region prompted investors to aggressively reduce exposure to riskier assets.

As a result, the Nifty index slipped below the psychologically important 24,000 mark during intraday trading.

In Asian markets, Japan’s Nikkei 225 closed lower, while South Korea’s Kospi, China’s SSE Composite Index, and Hong Kong’s Hang Seng Index ended in positive territory.

European markets mostly traded lower, although US markets had ended higher in Friday’s session.

According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs. 4,110.60 crore on Friday, adding further pressure on domestic markets.

Meanwhile, international Brent crude oil prices surged 2.23 percent to trade at around $103.5 per barrel following renewed tensions in the Gulf region after Trump rejected Iran’s peace proposal.