Sensex falls 1,250 points, Nifty below 25,500 amid Middle-East tensions

Indian stock markets took a sharp hit on October 3, as escalating tensions between Iran and Israel rattled global investors. The BSE Sensex plunged by over 1,250 points, while the Nifty50 slipped below the 25,500 mark. At 11:29 AM, the Sensex was trading at 83,041.17, down 1.45%, and the Nifty50 was at 25,418.00, down 1.47%. The crash was fueled by heightened concerns over the Middle East conflict, with Iran’s missile strikes on Tel Aviv and Israel’s military response causing fears of oil supply disruptions.

Crude oil prices surged in response to the conflict, adding to the woes of oil-importing nations like India. Brent crude briefly crossed $75 per barrel, further impacting the Indian markets. Reliance Industries, HDFC Bank, and ICICI Bank were among the top losers on the Sensex, while only JSW Steel and Tata Steel managed to remain in positive territory. Broader markets also reflected the downturn, with the Nifty MidCap index down 1.13% and the Nifty SmallCap index down 1.28%.

Foreign Institutional Investors (FIIs) have continued their selling spree, offloading over Rs 5,579 crore in Indian equities on October 1, as they shifted focus to cheaper Chinese stocks. The ongoing sell-off by FIIs has been a persistent trend this year, with cautious sentiment towards Indian markets due to global uncertainties.

Adding to the volatility, the India VIX, which measures market volatility, surged 8.9%, indicating growing nervousness among investors. The market was also weighed down by the Securities and Exchange Board of India’s (SEBI) decision to tighten rules in the futures and options (F&O) segment, limiting weekly expiries and increasing contract sizes, dampening retail sentiment.