Markets crash 2.5% today: Nifty 50 down 10% since US-Iran war began, down 14% from lifetime high; what lies ahead?

Stock market today news: Sensex, Nifty see profit booking in trade. 

• Sensex, Nifty plunge on West Asia conflict, oil spike.
• Nifty dropped 2.6 percent to its lowest since April 2025.
• Rupee sinks to record 93.94 vs dollar on rising crude prices.

Did our AI summary help?

The benchmark equity indices Sensex and Nifty declined sharply on Monday, tracking weak global cues as the West Asia conflict entered its fourth week and pushed crude oil prices higher.

The Sensex fell 1,904.61 points or 2.5 percent to 72,628.35 in trade. The broader Nifty dropped 610.35 points or 2.6 percent to its lowest level since April 9, 2025 at 22,504.15.

The volatility index, which gauges market expectations of near-term volatility, surged 15 percent to the 26 level, its highest since early June 2024.

The benchmark Nifty50 has declined 10 percent since the US-Iran war began on February 28 and is down 14 percent from its lifetime high.

6 key factors behind market decline

Escalating tensions between the United States and Iran weighed on investor sentiment. Reports of threats related to the Strait of Hormuz and possible retaliation have raised concerns over disruption in global energy supplies.

Analysts said the lack of clarity on the duration and outcome of the conflict has kept markets on edge.

Anand James, Chief Market Strategist at Geojit Investments, said the widening of the lower Bollinger band following volatile moves last week has brought the 22,000 level back into focus.

He said the first leg of the decline could target 22,560 before any consolidation, while reversal attempts would require a rise above 23,179 to gain momentum.

Analysts at Choice Broking said it would be prudent to accumulate fundamentally strong stocks on meaningful declines rather than chase short-term bounces. Fresh long positions should ideally be considered only after the Nifty stages a decisive recovery and sustains above the 24,500–25,000 mark, indicating improving sentiment and the possibility of a stable recovery.

Abhinav Tiwari, Research Analyst at Bonanza, said "For domestic investors, the key point is that market corrections often push valuations back toward their long-term mean. That process is now visible, especially in large-cap stocks. Large caps should therefore be treated as the leading indicator for market direction because foreign ownership is highest there, and institutional money usually returns first to quality large names. Stock market strategy ahead should focus on gradual accumulation instead of aggressive deployment. The premium valuations India enjoyed historically may not fully return in the next few years because macro conditions such as higher global rates, slower earnings upgrades, and tighter liquidity can keep valuation multiples moderate. That means investors should prefer quality businesses with earnings visibility, strong balance sheets, and reasonable valuations rather than chasing momentum. A practical strategy is to keep cash available, accumulate large caps during corrections, stay selective in midcaps, and focus on sectors where earnings remain durable."

Meanwhile, the rupee fell 41 paise to hit a record low of 93.94 against the US dollar in early trade, pressured by rising crude prices and continued foreign fund outflows. Weak domestic equities further weighed on the currency. Bond yields also moved higher, reflecting pressure from global and domestic factors.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.