Sensex down 703 pts, Nifty 208, Brent crude rises 7.33% to $102.2 on war fears

Benchmark equity indices Sensex and Nifty ended lower on Monday after the collapse of US–Iran negotiations triggered a surge in oil prices and heightened fears of a prolonged conflict in West Asia, unsettling investor sentiment globally.

The 30-share BSE Sensex fell 702.68 points , or 0.91 per cent , to close at 76,847.57 . During the session, it had plunged as much as 1,681.93 points , or about 2.16 per cent , to 75,868.32. The NSE Nifty declined 207.95 points , or 0.86 per cent , to settle at 23,842.65 , after dropping nearly two per cent in early trade.

All the 30 Sensex constituents initially traded in the red, with Titan, Sun Pharma, NTPC, Bharat Electronics, Power Grid and Bharti Airtel among the major laggards.

Investor sentiment weakened after marathon 21-hour peace talks in Islamabad between the United States and Iran failed to yield a breakthrough, leaving the fragile ceasefire uncertain and raising concerns about renewed hostilities in the region.

Oil prices jumped sharply following reports of a US naval blockade targeting Iranian ports , pushing Brent crude above $100 per barrel , which raised fears of inflation and economic disruption across global markets.

Weak cues from overseas markets also weighed on domestic equities. Asian markets traded lower, with Japan’s Nikkei falling about 0.7–1 per cent , Hong Kong’s Hang Seng and China’s Shanghai Composite also slipping, while Australia’s ASX 200 closed about 0.4 per cent lower , reflecting the broader global risk-off sentiment triggered by the geopolitical tensions.

Market volatility rose sharply, with the India VIX climbing to around 20.5 , while most sectoral indices and broader markets also ended lower amid widespread selling pressure.

Analysts said elevated crude prices could fuel inflation, weaken currencies and hurt corporate margins, particularly in sectors such as aviation, paints, fertilisers and oil marketing.

Foreign Institutional Investors (FIIs), however, had turned buyers in the previous session, purchasing equities worth Rs 672.09 crore, according to exchange data. On Friday, the Sensex had rallied 918.60 points to settle at 77,550.25, while the Nifty gained 275.50 points to end at 24,050.60.