Sensex slumps over 1,000 points as West Asia tensions hit markets

Equity investors were hit hard on Monday as geopolitical tensions in West Asia rattled the markets, erasing wealth worth Rs 6.59 lakh crore. The 30-share BSE Sensex opened with a steep fall of 2,743.46 points (3.37%) at 78,543.73 but partially recovered to close at 80,238.85, down 1,048.34 points (1.29%). The market capitalisation of BSE-listed companies fell to Rs 4,56,90,693.19 crore (USD 5 trillion).

“Indian equities witnessed a sharp decline as escalating tensions in West Asia triggered a pronounced risk-off response. Markets reacted to US and Israeli strikes on Iran and subsequent regional retaliation, prompting a flight to safe-haven assets,” said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd.

Global crude prices surged, with Brent crude jumping 7.29% to USD 77.85 per barrel. “Investor sentiment deteriorated sharply after escalating tensions in the Middle East triggered a surge in crude oil prices and heightened global uncertainty. The spike in oil raised concerns about inflation, currency pressure, and India’s import bill,” noted Ajit Mishra, SVP, Research, Religare Broking Ltd.

The volatility follows the confirmed death of Iran’s Supreme Leader Ayatollah Ali Khamenei in a coordinated US-Israeli airstrike early Saturday. Iran retaliated by firing missiles at Israel and other countries in the region.

Among Sensex constituents, InterGlobe Aviation, Larsen & Toubro, Adani Ports, Maruti, Asian Paints, and Reliance Industries were the biggest losers, while Bharat Electronics, Sun Pharma, and ITC managed gains. The BSE smallcap select index fell 1.81%, and the midcap select index declined 1.67%. Sectoral indices saw services drop 3.81%, consumer durables 2.30%, auto 2.23%, consumer discretionary 2.16%, oil & gas 2.15%, industrials 2.14%, and energy 2.06%.

On the BSE, 3,561 stocks declined, 821 advanced, and 146 remained unchanged, highlighting the widespread impact of the geopolitical crisis on investor sentiment.