Sensex crashes 1,800 points amid Hormuz crisis; rupee sinks to record low

Rising war tensions and surging oil prices have unsettled global markets, driving sharp volatility that will likely persist until geopolitical uncertainty eases. Investors have grown cautious, and the impact is already affecting both financial markets and everyday economic costs.

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Oil surge and geopolitical tensions spark broad market volatility

The Indian rupee fell to a record low of ₹93.89 against the US dollar as soaring crude oil prices and escalating tensions involving the US, Israel, and Iran increased pressure. Since India imports over 80% of its oil, the spike in Brent crude above $110 per barrel has sharply raised the import bill and boosted demand for dollars. Foreign investors have pulled money out of Indian equities and shifted toward higher US bond yields, adding to the pressure, even as the Reserve Bank of India stepped in to limit volatility.

Equity markets reflected this uncertainty, with Dalal Street witnessing a broad sell-off. The BSE Sensex dropped 1,822 points to 72,710.71, and the NSE Nifty50 declined 533 points to 22,581.20 in early trade. Selling spread across sectors, with metals, PSU banks, financials, auto, and realty stocks leading the fall. Midcap and smallcap stocks also declined sharply, showing widespread weakness, while IT stocks managed to hold relatively steady.

The conflict, now in its fourth week, has intensified concerns around the Strait of Hormuz, a key oil transit route, raising fears of supply disruptions and prolonged high energy prices. Analysts say the global risk-off sentiment continues to affect all asset classes, and markets are closely tracking developments in the region. Until the situation becomes clearer, investors will likely remain cautious and markets will continue to experience high volatility.

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