Sensex settles 1,100 pts lower, Nifty ends below 24,500: Raging Middle East conflict among key factors behind market decline

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

• Sensex and Nifty hit 11-month and 10-month lows in global selloff.
• West Asia conflict and rising crude prices spook investors.
• Rupee hits record low, India VIX surges 22 percent to 20.83.

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The equity benchmark indices Sensex and Nifty plunged on Wednesday, mirroring a weak global trend amid an escalation in the West Asia conflict that pushed crude oil prices higher.

The Sensex settled at 1,122.66 points or 1.4 percent lower at 79,116.19, while the broader Nifty was at 24,480.50, down 385.20 points or 1.55 percent.

In early trade, the Sensex tanked 1,700 points, or 2.24 percent, to hit an 11-month low of 78,443.2. The broader Nifty slumped 2.25 percent to a 10-month low of 24,305.4.

Among the major laggards in the Nifty pack were Grasim Industries, Tata Consumer Products and SBI Life Insurance Company, which fell up to 4 percent. Market breadth remained negative, with 759 shares advancing, 2,945 declining and 134 remaining unchanged.

All the 16 major sectoral indices were trading in the red. The broader indices also witnessed heavy selling, with the Nifty Smallcap 100 and Nifty Midcap 100 declining over 2 percent each.

Key factors behind market crash

1) West Asia conflict: The ongoing conflict in West Asia continued to weigh on investor sentiment. Iran carried out fresh strikes on several Gulf countries in retaliation for the joint attack by Israel and the US, while the US and Israel also launched further strikes on Iran. The escalation has raised concerns over supply disruptions and higher crude prices.

"With the war escalating and crude oil rising, markets are going into a period of heightened uncertainty. Nobody knows how long this conflict will go on and what will be the extent of havoc it could wreak. From the perspective of India, which relies on imports for around 85 percent of oil requirements, the real concern is the potential inflation and its consequences on economic growth," VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said.

He added that the possibility of a widening trade deficit, currency depreciation, higher inflation and slower growth were key concerns from a market perspective.

2) Crude jumps: Brent crude, the global oil benchmark, rose 0.87 percent to USD 82.11 per barrel. It had settled at its highest level since January 2025 in the previous session and has gained nearly 17 percent in the last four sessions. Higher oil prices are seen as negative for major importers like India.

Macquarie analysts, led by Suresh Ganapathy, told Reuters that any sharp spike in oil prices could have implications for India’s current account deficit, fiscal deficit and inflation, and may also put pressure on the rupee.

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3) Weak global cues: South Korea’s Kospi plunged over 10 percent, while Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were trading sharply lower. US markets ended in the negative territory on Tuesday.

4) FII selling: Foreign Institutional Investors offloaded equities worth Rs 3,295.64 crore on Monday. Sustained selling by overseas investors exerts pressure on domestic markets as it leads to capital outflows and weighs on liquidity and sentiment.

5) Weak rupee: The rupee slumped 69 paise to hit an all-time low of 92.18 against the US dollar in early trade on Wednesday, tracking a spike in crude oil prices and persistent geopolitical tensions. At the interbank foreign exchange market, the domestic currency opened at 92.05 and touched an early low of 92.18, down 69 paise from its previous close.

6) Vix rises: The India VIX, the volatility gauge, surged 22 percent to 20.83, its highest level since May 2025. A sharp rise in the VIX indicates increased market volatility and heightened uncertainty among investors.

Technical view

Anand James, Chief Market Strategist at Geojit Investments, said recovery attempts after the gap-down opening would need to sustain above 24,500 to prevent further weakness. Failing this, the Nifty could slip towards the 24,000–23,550 levels. He advised caution in view of the spike in volatility and the likelihood of sharp swings.

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