Indian stock markets took a sharp hit on Friday as geopolitical tensions escalated with Israel’s attack on Iran, pushing oil prices higher and triggering widespread selling. According to Business Standard, the S&P BSE Sensex plummeted 838.78 points to 80,853.20, while the NSE Nifty50 slid 252.80 points to 24,635.40 by 9:25 AM.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted the timing of the crisis, stating, “Following the Ahmedabad air tragedy, news of Israel’s strike on Iran has emerged.” He warned of severe economic fallout if the conflict persists, adding, “Israel’s operation, expected to last days, has driven Brent crude prices up 12% to $78. A prolonged Iran retaliation, potentially closing the Strait of Hormuz, could choke oil supplies and push prices higher.”
The market opened under heavy selling pressure, with all stocks declining. Bharti Airtel saw a modest drop of 0.32%, followed by ITC at 0.46%, TCS at 0.49%, Sun Pharma at 0.55%, and Axis Bank at 0.69%. Among the hardest hit, Power Grid Corporation crashed 1.84%, Adani Ports fell 1.75%, Kotak Mahindra Bank dropped 1.75%, Tata Motors declined 1.63%, and Reliance Industries shed 1.54% in early trade.
Vijayakumar highlighted the market’s vulnerability, stating, “The duration of the conflict will dictate market trends. Short-term risk aversion is likely, with sectors reliant on oil derivatives—like aviation, paints, adhesives, and tyres facing heavy losses. Oil producers like ONGC and Oil India may hold steady.”
Broader indices also suffered, with the Nifty Midcap 100 down 0.90% and Nifty Smallcap falling 1.07%. The India VIX, a measure of market volatility, surged 7.33%. All sectoral indices opened in the red, with Nifty Consumer Durables and Nifty Oil & Gas leading losses at 1.25%, followed by Nifty Media at 1.21%, Nifty PSU Bank at 1.20%, Nifty Auto at 1.16%, Nifty Financial Services at 1.09%, Nifty Private Bank at 1.07%, Nifty FMCG at 0.95%, Nifty IT at 0.91%, Nifty Metal at 0.91%, Nifty Realty at 0.72%, Nifty Pharma at 0.61%, and Nifty Healthcare at 0.59%. No sectoral index opened in positive territory.