War fears rock markets: Sensex plunges, rupee slides after Israel-Iran strikes

At the opening bell, the BSE Sensex crashed more than 800 points, while the NSE Nifty 50 slipped over 200 points.

Though the market recovered some ground during the session, the Sensex continued to trade around 500 points lower, while the Nifty remained down by 180-200 points.

Rupee weakens against dollar

The Indian rupee also came under pressure, falling 38 paise against the US dollar to trade at 95.32.

Market participants attributed the sell-off to rising geopolitical tensions after Israel and Iran exchanged direct attacks for the first time since a ceasefire agreement, stoking concerns over global economic stability and energy supplies.

Israel-Iran ceasefire breaks down

The fragile ceasefire between Israel and Iran effectively collapsed over the weekend as both countries launched fresh attacks, reigniting fears of a broader regional conflict.

Iran reportedly fired around 11 ballistic missiles towards Israel, describing the move as retaliation for Israeli military actions linked to the conflict in Lebanon and strikes on Hezbollah positions in Beirut.

Israel retaliates with airstrikes

In response, Israel carried out airstrikes on military targets inside Iran, including locations in and around Tehran, Isfahan and Tabriz.

Israeli officials said the operation targeted missile-launch infrastructure and other military facilities.

Investors seek safety

The renewed hostilities have heightened uncertainty in global markets, with investors worried about potential disruptions to oil supplies and shipping routes in the Middle East.

The escalation has also fuelled concerns about inflationary pressures and their impact on economies worldwide, prompting a shift towards safer assets and triggering selling across equity markets.