Fears of rising crude oil and gas prices, particularly with Brent nearing $85 per barrel amid concerns over the Strait of Hormuz, weighed heavily on sentiment.
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Markets endured a brutal session on Wednesday as escalating hostilities under “Operation Epic Fury” involving the US, Israel and Iran triggered a broad risk-off selloff. Though the markets made a late-hour recovery due to a positive opening in European stocks, it was not enough to change the broad sentiment. Fears that the war could further pressure India’s macro through higher crude oil and gas prices and choked sentiment, said analysts.
After hitting a low of 78,443.20 by shedding nearly 1,800 points, the BSE Sensex recovered to close at 79,116.19, with a fall of 1,122.66 points. The Nifty 50 shed 385.20 points, to end at 24,480.50, recovering from the day’s low of 24,305.40.
FIIs rush for exit
Foreign portfolio investors pulled out another ₹8,752.65 crore worth of shares on Wednesday, even as domestic institutions bought aggressively for ₹12,068 crore.
Volatility meter spikes
The fear gauge, India VIX, surged 22.6 per cent to 20.83 — its highest since May 2025 — as Brent crude pushed toward $85 per barrel amid fears of disruption to the Strait of Hormuz.
Energy supply worries
According to Kotak Securities, while a prolonged shutdown appears unlikely, even a disruption lasting a few weeks could cause significant market dislocation. “Early signs of stress are already visible. Qatar, one of the world’s largest LNG exporters, has reportedly shut its LNG plants, exacerbating concerns over supply continuity,” it said in a note..
Broader markets bleed
Broader markets were hit harder. The Nifty Next 50 tumbled 2.70 per cent, the Nifty Midcap 100 fell 2.16 per cent, and the Nifty Smallcap 100 slipped 2.11 per cent. Nifty Bank dropped 1.81 per cent to 58,755.25. Except for Nifty IT, all other indices closed in the red, with Metal being the hardest hit, falling 3.99 per cent, followed by Nifty PSU Bank (3.24 per cent), Realty (3.11 per cent) and Nifty Oil & Gas (3.09 per cent). Nifty IT was the sole gainer, up a modest 0.11 per cent, buoyed by the rupee’s slide.
Global selloff tremors
Ponmudi R, CEO of Enrich Money, captured the global context: “…South Korea’s KOSPI plunged nearly 12 per cent, triggering circuit breakers, while Thailand’s SET index declined over 8 per cent, highlighting the intensity of the global risk aversion.”
On the Nifty 50, only four stocks ended in the green.
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Published on March 4, 2026