Indian stock markets plunged nearly 2% on Thursday after US President Donald Trump announced plans for fresh attacks on Iran within weeks.
The Sensex dropped 1,385 points to 71,748, while the Nifty fell 426 points to 22,253.
Heavy selling wiped out over ₹9 lakh crore in market capitalisation, dragging BSE-listed companies’ value down to Rs 413 lakh crore. Market breadth remained weak, with 1,823 shares declining against 566 advancing.
Volatility surged as India VIX rose 5%, signalling short-term selling pressure. Almost all sectors opened in red, with Nifty Pharma, PSU Bank, Realty, Healthcare, and Chemical stocks falling more than 3%.
The rupee opened stronger after the Reserve Bank of India introduced measures to curb volatility. It traded at 93.53 against the dollar, recovering from a record low of 94.83 earlier this week.
Global markets reacted sharply. Brent crude crossed $105 per barrel, while WTI topped $103. S&P 500 futures erased $550 billion in value within minutes of Trump’s remarks. Gold prices slipped below $4,700 per ounce, and silver dropped under $73.
Trump warned that the war could last two to three weeks and threatened strikes on Iranian power plants if no deal is reached. He claimed US forces had destroyed Iran’s navy and air force, adding that strategic objectives were close to completion.
The sharp fall in Indian equities highlights investor concerns over escalating geopolitical risks and their impact on oil, currency, and global trade flows.
