Sensex and Nifty crashed after 3 PM today as US-Iran Tensions
Indian stock markets witnessed a sharp late-session selloff on Friday, with the benchmark Sensex and Nifty plunging heavily after 3 PM amid rising geopolitical tensions, MSCI index rebalancing and concerns over elevated crude oil prices.
The BSE Sensex closed 1,092 points lower at 74,775.74, while the NSE Nifty50 dropped 359 points to settle at 23,547.75. The market crash intensified in the final trading hour, with investors rushing to book profits after weeks of market volatility.
A major trigger behind the sudden decline was uncertainty surrounding a possible peace arrangement between the United States and Iran. Investors turned cautious amid fears that prolonged geopolitical tensions could further impact global markets and energy supplies.
The selloff was further amplified by MSCI’s latest index rebalancing exercise, which triggered heavy portfolio adjustments by foreign passive funds. Analysts noted that India’s weightage in the MSCI Emerging Markets Index is expected to decline significantly following the rejig, adding pressure on heavyweight stocks.
Rising concerns over crude oil prices also weighed on market sentiment. Although oil prices eased during May, they remain sharply higher compared to pre-conflict levels. As one of the world’s largest crude importers, India remains vulnerable to sustained energy price shocks and inflationary pressures.
Heavyweight sectors including banking, financials and information technology witnessed sharp declines, dragging benchmark indices lower. Reliance Industries, ONGC and ITC were among major stocks under pressure during the session.
Despite Friday’s steep correction, broader market segments such as midcap and smallcap stocks showed relative resilience, supported by optimism over corporate earnings and domestic demand.
Market participants will now closely monitor developments in the Middle East, crude oil trends, foreign institutional investor activity and upcoming economic data for further direction.
