Sensex Plunges Nearly 1,500 Points as Crude Oil Surge and Middle East Tensions Shake Markets

Indian stock markets witnessed another sharp sell-off on Tuesday as rising crude oil prices and uncertainty surrounding the ongoing conflict in West Asia continued to weaken investor confidence.

The benchmark indices extended their decline for the fourth consecutive trading session, with both the Sensex and Nifty falling nearly 2 percent amid fears of escalating geopolitical tensions and persistent foreign fund outflows.

Investor sentiment was also negatively impacted by the Indian rupee falling to a record low against the US dollar.

During early morning trade, the BSE Sensex plunged as much as 1,565.78 points, or nearly 2 percent, to touch 74,449.50.

By the end of the trading session, the 30-share Sensex closed 1,456.04 points lower at 74,559.24, while the NSE Nifty50 declined 436.30 points, or 1.83 percent, to settle at 23,379.55.

Among Sensex stocks, Tech Mahindra, Adani Ports, HCL Technologies, Tata Consultancy Services (TCS), Titan, and Bharat Electronics emerged among the biggest losers of the day.

On the other hand, shares of State Bank of India (SBI) managed to close in positive territory despite the broader market weakness.

Sector-wise, all major indices except metals, oil & gas, and PSU banks ended lower.

The Nifty Smallcap 100 index fell 1.26 percent, while the Nifty Midcap 100 index declined 0.81 percent.

Bank Nifty slipped nearly 1 percent during the session, while the Nifty IT index plunged 3.3 percent ahead of key US inflation data expected later this week.

Major IT stocks including TCS, Infosys, HCL Technologies, and Wipro fell between 2.5 percent and 4 percent during the session.

Meanwhile, the Indian rupee weakened further and ended Tuesday’s trading at a historic low of 95.63 against the US dollar, declining by 35 paise.

The market downturn intensified after US President Donald Trump rejected Tehran’s latest proposal aimed at ending the prolonged regional conflict, describing the response as “totally unacceptable.”

Analysts stated that Indian markets are currently facing a “triple pressure” situation due to soaring crude oil prices, a sharply weakening rupee, and aggressive selling by foreign institutional investors (FIIs).

International crude oil prices are currently trading between $105 and $107 per barrel, adding to inflation concerns and fears of higher import costs for India.

According to stock exchange data, foreign institutional investors sold shares worth Rs. 8,437.56 crore on Monday, further increasing pressure on domestic equities.

In Asian markets, South Korea’s Kospi, China’s SSE Composite Index, and Hong Kong’s Hang Seng Index ended lower, while Japan’s Nikkei 225 managed to close higher.

European markets also traded in negative territory, although US markets had ended Monday’s session on a positive note.

Meanwhile, international Brent crude oil prices rose another 2.75 percent and were trading around $107.1 per barrel, reflecting growing concerns over energy supply disruptions amid escalating tensions in the Gulf region.