Sensex Tanks Over 800 Points, Nifty Plunges Amid Israel-Iran Conflict

Indian stock markets witnessed a sharp decline today, driven by escalating tensions between Israel and Iran. The Sensex plunged over 800 points, while the Nifty tumbled nearly 250 points as global investor concerns deepened. The primary reasons behind this market plunge are fears of rising oil prices and the potential impact on global trade.

By 9:20 am, the Sensex had dropped over 800 points, and the Nifty50 was down by nearly 250 points. Broader market indices followed suit, with all sectors trading in the red due to the growing uncertainty surrounding the conflict.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, “A hallmark of a bull market is its ability to climb all walls of worries. This bull market is doing exactly that, ignoring even the worsening situation in the Middle East.”

He further added, “The steady performance of the US market yesterday signals that the conflict between Israel and Iran is not yet considered a threat to economies or corporate earnings. However, if Israel targets any oil installations in Iran, it could cause a massive spike in crude prices. This would be especially damaging for oil-importing nations like India.”

Dr. Vijayakumar also suggested that investors should monitor the situation closely and consider partially switching their portfolios to defensive sectors like Pharmaceuticals and FMCG.

Notably, Iran launched 180 missiles at Israel on Tuesday, in retaliation to the ongoing Israeli airstrikes in Lebanon. Israeli Prime Minister Benjamin Netanyahu vowed that Iran would “pay the price” for firing over 180 ballistic missiles. While most missiles were intercepted by Israel and its allies, they confirmed plans for retaliation.

Iran’s attack comes amid ongoing Israeli airstrikes on Hezbollah strongholds in Lebanon, including parts of Beirut. Following the assassination of Hezbollah leader Hassan Nasrallah, Israel intensified ground operations in Lebanon.

Israel launched an airstrike in central Beirut on Thursday, killing at least two people and injuring 11 others. Lebanon’s health ministry reported late Wednesday that 46 people were killed and 85 injured in Israeli strikes across the country in the last 24 hours, according to AFP.