Sensex Sinks Over 1,300 Points as Israel-Iran Conflict Shakes Global Markets
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Summary: As tensions in the Middle East escalated, Indian financial markets plummeted on Thursday, affecting investor confidence worldwide.
Indian stock markets faced a sharp downturn on Thursday after escalating tensions in the Middle East rattled global investor confidence. The Sensex fell by 1,337 points, while the Nifty slipped nearly 1.7%, ending around 24,470.
The decline came after Israel carried out attacks on Iranian nuclear sites, heightening fears of a bigger global confrontation and upsetting global economic stability.
Oil prices have risen by more than 12%, topping $75 per barrel, putting pressure on energy-dependent economies. In India, oil and airline stocks took significant hits; ONGC, BPCL, and airlines such as IndiGo experienced losses.
Investors rapidly moved from high-risk assets to safer options such as gold, the dollar, and the Swiss franc. Meanwhile, defense stocks rose by as much as 8% due to anticipated increases in military spending.
The accident of an Air India jet in Ahmedabad heightened market anxiety.
Volatility surged across industries. All 13 of the NSE's sectoral indices closed in the negative, while the India VIX index, which measures market volatility, rose over 8%.
With global tensions high and oil prices rising, analysts warn that market volatility may persist in the coming days unless there is a clear way to de-escalation in the Middle East.
