The selloff in India’s stock market intensified as the Iran war dragged on for the fifth day, pulling down both equity benchmarks down by at least 2% each.
The 30-share BSE Sensex fell as much as 2.23%, or 1,795.65 points, to 78,443.20, even as the wider NSE Nifty 50 shed more than 500 points for a gap-down open. The oil & gas stocks fell, defence stocks surged, as the Iran war choked the Strait of Hormuz — the world’s crude oil pipeline. The crash has wiped out nearly ₹9 lakh crore in investor wealth already.
The rupee crossed the 92/$ for the first time. Financials were top Nifty losers.
India VIX, which indicates volatility in the markets, was up 25%.
According to analysts, there are three factors in play:
“The recovery attempts that may be expected post downside gap-open need to sustain Nifty 50 above 24,500 to discourage bears from regrouping,” Anand James, chief market strategist at Geojit Investments Ltd., said in an emailed statement to Hindustan Times.
“Else, expect 24,000-23,550. Do account for wild swings, given the spike in India VIX to the highest level since June 2025.”
According to latest news on the Iran war, Tehran’s so-called Assembly of Experts has chosen Mojtaba Khamenei, the son of the slain Supreme Leader Ayatollah Ali Khamenei, as the new leader of the country.