Dalal Street reeled under intense selling pressure in last session as geopolitical shockwaves from the escalating US-Israel-Iran conflict combined with financial headwinds to trigger a broad-based market rout. The Sensex plunged 1,123 points (1.4%) to close at 79,116, while the Nifty slumped 385 points (1.6%) to settle at 24,481 — both benchmarks hitting their lowest levels in over six months.
The decline marked the second consecutive session of heavy losses since hostilities intensified in West Asia. In just two trading days, the Sensex has fallen nearly 2,200 points, reflecting mounting investor anxiety over rising crude prices, currency instability, and sustained foreign fund withdrawals.
Crude oil prices surged to more than a year-high amid fears of supply disruptions from the Gulf region, heightening concerns about imported inflation for India, one of the world’s largest energy importers. Simultaneously, the rupee weakened to a fresh lifetime low against the US dollar, compounding pressure on equities and dampening foreign investor confidence.
Foreign portfolio investors led the sell-off, pulling out over Rs 12,000 crore across two sessions, including Rs 8,753 crore on Wednesday alone. While domestic institutional investors attempted to stabilise markets with net purchases exceeding Rs 12,000 crore, their efforts were insufficient to counterbalance the scale of foreign exits.
The market breadth painted a grim picture: 27 of the 30 Sensex stocks closed in the red, with heavyweight counters such as Reliance Industries, HDFC Bank, and L&T contributing significantly to the index’s decline. In the broader market, over 3,200 stocks ended lower, underscoring widespread selling pressure across sectors.
Investor wealth erosion has been severe. BSE’s total market capitalisation shrank by Rs 9.8 lakh crore in a single session, taking cumulative losses since the conflict began to over Rs 16 lakh crore.
Although Asian peers such as Japan’s Nikkei and Hong Kong’s Hang Seng also declined sharply, India’s vulnerability to crude oil shocks and persistent FPI outflows amplified the domestic market’s fall. Analysts suggest that until geopolitical clarity emerges and oil prices stabilise, volatility is likely to remain elevated, keeping Dalal Street on edge.