Sensex falls 1,048 pts on war in West Asia, fear index up 25% The escalating conflict in West Asia triggered a sharp decline in Indian stock markets as investors reacted to heightened geopolitical tensions. The Sensex, India’s key benchmark index, dropped 1,048 points (1.3%) to close at 80,239, marking its lowest level in nearly six months. The market opened sharply lower, falling nearly 3,000 points following the US-Israeli attack on Iran, but later recovered some losses as buying activity picked up. The Nifty 50 index also fell 313 points (1.2%) to 24,866, reflecting widespread risk aversion. The volatility index (VIX), often referred to as the fear gauge, surged 25% during the session, signaling increased uncertainty among traders. Foreign institutional investors were the main sellers, with a net outflow of nearly Rs 3,300 crore recorded. The sharp decline left investors collectively poorer by Rs 6.6 lakh crore, as the BSE’s market capitalization fell to Rs 456.9 lakh crore. Analysts attributed the downturn to rising geopolitical risks, particularly the potential escalation of the conflict between the US-Israeli alliance and Iran. The war’s impact extended beyond India, with global markets also experiencing declines. Asian indices such as the Nikkei in Japan and Hang Seng in Hong Kong fell by 1.4% and 2.1%, respectively, while the Shanghai Composite bucked the trend, rising 0.5%. In Europe, the FTSE and DAX indices closed lower by 1.3% and 2.6%, respectively. The crisis also sent crude oil prices surging, raising concerns about inflationary pressures in India and affecting energy-dependent sectors. Among the Sensex constituents, 27 out of 30 stocks closed in the red, with L&T and Reliance Industries contributing significantly to the index’s decline.#iran #sensex #nifty_50 #us_israeli_alliance #vix
