Stock Markets Drop in Early Trade on Escalating US-Iran Tensions, Rising Oil Prices

India’s stock market indices opened lower on Thursday, with the BSE Sensex falling 358.54 points to 73,624.64 and the NSE Nifty dropping 117 points to 23,098.30. The decline followed global equities weakness, rising crude oil prices, and escalating tensions between the US and Iran, which reignited concerns over Middle East stability and potential regional conflict. Brent crude, the global benchmark, rose 1.70% to $94.68 per barrel, heightening fears of inflationary pressures and fiscal strain on India. Among Sensex constituents, HCL Tech, Infosys, Tech Mahindra, Tata Consultancy Services, Eternal, and Trent led the losses, while Power Grid, ICICI Bank, Bharti Airtel, and InterGlobe Aviation outperformed. Foreign Institutional Investors (FIIs) sold ₹2,124.98 crore in equities the previous day, exacerbating market sentiment. Analysts cited concerns over crude oil prices threatening India’s inflation trajectory, corporate margins, and rupee stability, alongside broader geopolitical risks. The downturn mirrored global trends, with Asian markets like South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng also declining. US markets had ended sharply lower the prior day, with the Dow Jones dropping over 950 points amid fears of disrupted energy markets and sustained inflation. Market analysts warned that rising oil prices could strain India’s fiscal balance and corporate earnings, compounding existing economic pressures. The decline came after the Sensex had trimmed intraday gains the previous day, closing just 64.42 points higher at 73,983.18, while the Nifty dipped slightly to 23,214.95.