Stock Market Crashes 1.25% Amid U.S.-Iran Tensions The Indian stock market experienced its most volatile day in eight months on Monday, driven by escalating tensions between the U.S. and Iran. The benchmark NSE Nifty 50 fell 1.25% to 24,865.70 points, while the BSE Sensex 30 declined by the same margin to 80,238.85. The sharp drop followed reports of Iran shutting down the Strait of Hormuz, a critical oil transit route, which disrupted approximately a fifth of global oil supply. The indices opened down 2% but gradually stabilized before closing the day. Sectoral indices on the NSE also faced declines, with only Nifty Metal and Nifty Pharma showing gains. Of the 3,296 stocks traded, just 651 advanced, while 2,578 declined. Companies like Bharat Electrical Ltd., Hindalco, ITC, Sunpharma, and ONGC saw positive movements, whereas Indigo, L&T, Adani Ports, Maruti Suzuki, and Asian Paints fell. The India VIX index, which measures market volatility, surged 23.54% to 16.9 points, marking the fastest single-day increase since April 7, 2025. Analysts attributed the volatility to the ongoing conflict in West Asia, emphasizing that short-term market fluctuations are likely. Shrikant Chouhan of Kotak Securities noted that as long as the Nifty 50 and Sensex 30 remain above key levels—24,750 and 80,000 points respectively—the market could rebound. Ashis Gupta of Axis Mutual Fund highlighted that wars in the region typically influence markets through oil price shocks. He warned that Iran’s attempt to block the Strait of Hormuz poses a significant risk to crude oil, refined products, and LNG prices. The reports of the Strait of Hormuz blockade triggered a rally in Brent Crude Futures, which reached a nearly one-year high of $79.15.#strait_of_hormuz #nse_nifty_50 #bse_sensex_30 #kotak_securities #axis_mutual_fund
