Rs 11 Lakh Crore Eroded as Markets Reel

Escalating tensions between the United States, Israel, and Iran have triggered sharp selling in Indian equity markets, wiping out nearly Rs 11 lakh crore in investor wealth over recent sessions.

Benchmark indices BSE Sensex and Nifty 50 fell more than 2.5% each across two consecutive trading days, reflecting rising global uncertainty.

Sensex Below 81,000

The Sensex dropped over 1,000 points, slipping below the 81,000 mark for the first time in over a month. The Nifty 50 also declined sharply, falling below the 25,000 level and breaching key technical support zones.

Market participants attributed the sell-off to investor concerns over geopolitical instability, rising crude oil prices, and fears of prolonged military conflict in West Asia.

Volatility Surges

The India VIX jumped more than 25% to 17.13, signalling heightened nervousness among traders.

Gold prices surged on the Multi Commodity Exchange as investors shifted towards safer assets. Analysts noted that elevated crude oil prices pose risks to India’s fiscal balance and inflation outlook.

What Experts Are Saying

Tanvi Kanchan of Anand Rathi Share & Stock Brokers said near-term conditions are likely to remain volatile. She highlighted that while global uncertainty is high, India’s domestic macroeconomic fundamentals remain relatively stable.

According to her, strong GST collections and expectations of earnings recovery in FY27 provide some support to long-term sentiment.

Vikram Kasat of PL Capital said markets are currently “headline-driven,” with oil prices and geopolitical developments dictating short-term direction. He advised investors to focus on quality balance sheets and companies with strong earnings visibility.

Naval Kagalwala of Shriram Wealth added that geopolitical flare-ups in the Middle East have historically led to temporary corrections followed by stabilisation. He noted that this is not an India-specific event, though rising oil prices could impact inflation and trade dynamics.

Technical View

Rupak De of LKP Securities pointed out that the Nifty has slipped below its rising trendline on daily charts, indicating weakening momentum. Immediate support is seen near 24,600. A breach below this level could lead to deeper corrections.

On the upside, resistance remains near 25,000. Until the index sustains above that mark, sentiment may remain cautious.

Long-Term Outlook

Despite short-term turbulence, analysts broadly agree that India’s long-term growth story remains intact. Domestic consumption trends, stable earnings expectations, and continued systematic investment plan (SIP) inflows provide structural support.

However, investors are advised to maintain disciplined risk management and avoid aggressive positioning during periods of heightened volatility.

As global tensions continue and oil prices fluctuate, Indian markets may remain sensitive to external cues in the coming weeks.