Geopolitical Tensions Send Stock Markets Plummeting

The stock market faced a severe downturn with the BSE Sensex plummeting by 1,236 points due to rising geopolitical tensions between the US and Iran. The investors' wealth was reduced by nearly Rs 7 lakh crore. The fear of conflict and institutional selling magnified the market's decline.

The stock markets experienced a dramatic downturn on Thursday, as investor wealth diminished by nearly Rs 7 lakh crore. The BSE Sensex plunged 1,236 points, or 1.5%, amid escalating tensions between the United States and Iran, causing widespread selling pressure on various stocks.

Geopolitical concerns heightened after a statement from US Vice President JD Vance suggested potential military action against Iran. This drove fears among investors, leading to a sharp decrease in equity values. Consequently, the Brent crude price surged above USD 70 per barrel, and the fear gauge India VIX saw a 9% spike.

Foreign Institutional Investors (FIIs) unloaded equities worth Rs 880.49 crore, with domestic investors also being net sellers. Despite limited institutional selling, the Sensex's drastic drop reflected heightened market anxieties. Meanwhile, European and Asian markets showed mixed results with some declines and others gaining strength.

(With inputs from agencies.)