Indian equity markets witnessed sharp selling pressure on Wednesday after renewed geopolitical tensions in West Asia triggered a spike in global crude oil prices, dampening investor sentiment across sectors.

The BSE Sensex plunged more than 625 points to trade around 77,600, while the NSE Nifty 50 declined nearly 150 points to 24,250 during early trade. Investors remained cautious after fresh US military strikes in Iran intensified concerns over energy supplies and global economic stability.

According to market data, heavy selling was witnessed in energy, banking and automobile stocks, with Asian Paints, ITC, IndiGo, Reliance Industries, Hindustan Unilever and Bajaj Finance emerging among the major losers.

Oil Prices Fuel Market Jitters

Investor sentiment weakened after crude oil prices climbed following reports that the United States carried out airstrikes on more than 80 military targets in southern Iran despite an existing ceasefire.

Washington said the operation was conducted in response to attacks on commercial vessels transiting the strategically important Strait of Hormuz. The renewed tensions pushed Brent crude close to $76 per barrel, raising concerns over inflationary pressures and increased import costs for oil-dependent economies such as India.

Higher crude prices generally weigh on Indian markets as they increase fuel import bills, pressure corporate margins, and may impact inflation and fiscal calculations.

Sectoral Indices Trade in Red

Selling pressure was visible across most sectoral indices on the National Stock Exchange.

Except for Nifty Healthcare and Nifty Pharma, all major sectoral indices traded lower during the session. Nifty Oil & Gas recorded the steepest decline, falling around 1.64%, reflecting investor concerns over rising energy costs and market volatility.

Banking, automobile, financial services and FMCG counters also remained under pressure throughout the morning session.

Asian Markets Show Mixed Trend

Asian markets presented a mixed picture amid the geopolitical uncertainty.

South Korea's KOSPI and Japan's Nikkei traded lower, while Hong Kong's Hang Seng Index bucked the trend with gains of more than 2%, supported by local buying interest.

The mixed performance reflected cautious investor sentiment across the region as markets assessed the potential impact of escalating tensions in the Middle East.

Wall Street Ends Lower

US equity markets had also ended Tuesday's session in negative territory.

The Dow Jones Industrial Average slipped 0.25%, while the technology-heavy Nasdaq Composite fell 1.16%. The S&P 500 also closed lower, indicating broader global risk aversion ahead of Wednesday's trading.

Foreign Investors Continue Buying

Despite the weak market sentiment, foreign institutional investors (FIIs) remained net buyers.

According to provisional exchange data, FIIs purchased Indian equities worth ₹393 crore on Tuesday, while domestic institutional investors (DIIs) were net sellers of approximately ₹384 crore.

Over the past week, FIIs have maintained positive inflows, although their overall investment for the previous month remains in negative territory.

Previous Session Also Weak

The decline follows a subdued trading session on Tuesday, when the Sensex closed 104 points lower at 78,181, while the Nifty ended 32 points lower at 24,399, indicating continued caution among investors amid global uncertainties.

With crude oil prices remaining elevated and geopolitical developments unfolding rapidly, market participants are expected to closely monitor international events, central bank signals and institutional investment flows for further direction.

Global crude oil prices eased back to the level seen just before the US-Iran conflict, bringing some relief to energy markets, even as Indian consumers face fresh price hikes on premium tech products and select semiconductor stocks surge on AI demand.

Benchmark Brent crude settled around $72 per barrel on Thursday — almost the same as $72.29 recorded a day before the conflict began on February 27. The drop comes after the US-Iran agreement and partial lifting of sanctions on Iranian oil exports, which has started improving shipping traffic through the Strait of Hormuz.

Energy experts, however, cautioned that any relief in domestic petrol and diesel prices may take time. According to energy analyst Narendra Taneja, the fuel currently sold at pumps was refined from expensive crude purchased earlier when rates were much higher. The full benefit of cheaper crude is likely to reflect only around Dussehra, after accounting for inventory lag and losses of oil marketing companies.

In a separate development, Apple has increased prices of its iPad and MacBook lineup in the US by up to $300. In India, the hike is even steeper, with some models becoming up to ₹1 lakh more expensive. The company cited rising costs of memory and storage chips due to massive demand from AI data centres.

Meanwhile, in the global markets, US semiconductor major Micron Technology briefly surpassed Meta Platforms and Tesla in market capitalisation. Driven by strong demand for AI-related memory chips, Micron’s shares jumped sharply, pushing its market value to around $1.37 trillion at one point.

The developments reflect the mixed signals emerging after the Iran conflict — easing energy prices on one side and rising input costs in the tech sector on the other. For Indian consumers, the Apple price increase is likely to dent demand for premium devices in the coming festive season.

Share markets remained closed on Friday. No change was reported in petrol and diesel prices on Thursday either.

The coming weeks will be watched closely for how global crude prices behave and whether oil marketing companies pass on any benefits to consumers. On the tech front, the AI boom continues to reshape valuations, with companies like Micron gaining significantly from the infrastructure buildout.

Further movement in both energy and technology sectors will depend on how quickly supply chains normalise and geopolitical tensions remain under check.

Global crude oil prices have cooled down to the level seen just before the US-Iran conflict erupted, offering some hope for lower fuel costs in India, though experts say common people may have to wait till Dussehra for any real relief at petrol pumps.

On Thursday, benchmark Brent crude settled around $72 per barrel — almost the same as $72.29 recorded on February 27, a day before the conflict began. The easing comes after the US-Iran agreement on June 17, partial lifting of sanctions on Iranian oil exports, and gradual normalisation of shipping through the Strait of Hormuz.

Officials said nearly 80 vessels have passed through the strategic waterway since Monday. While this marks improvement, the daily average is still lower than the pre-war figure of over 100 ships.

Energy expert Narendra Taneja said that despite the fall in international crude prices, petrol and diesel rates in India are unlikely to drop immediately. “The fuel we are buying at pumps right now was made from crude oil purchased when rates were hovering around $110-125 per barrel for Indian refiners,” he explained.

It takes roughly 75-80 days for fresh crude to reach petrol pumps. Loading at source ports takes 15-20 days, transportation to Indian ports another 55-60 days, followed by refining and distribution. Only after this cycle will the benefit of cheaper crude reflect at outlets.

Oil marketing companies are currently incurring losses of around ₹7.5 per litre on petrol and diesel. The government had earlier reduced excise duty by ₹10 per litre, which provided some buffer. Companies are expected to first recover part of their losses before passing on the benefits to consumers.

Taneja added that some relief could begin by the end of August or early September, with more noticeable cuts possibly around Dussehra. “I don’t see crude prices rising sharply in the near future, so the downward trend should hold,” he noted.

The development has brought cautious optimism among industry watchers. Lower global crude not only helps reduce India’s import bill but also supports the broader economy by checking inflation. However, the lag in transmission of prices remains a key challenge for policymakers and consumers alike.

Further movement in fuel prices will also depend on how quickly shipping through Hormuz returns to normal and any fresh geopolitical triggers. For now, the government and oil companies are monitoring the situation closely.

As households continue to feel the pinch of high fuel costs, many are hoping the expected relief materialises sooner rather than later, especially ahead of the festive season.

Indian stock markets ended sharply lower on Tuesday, with benchmark indices posting their biggest single-day decline in recent sessions. The BSE Sensex plunged 893.39 points to settle at 76,200.68, while the NSE Nifty closed with losses of more than 1%, reflecting weak investor sentiment across sectors.

The decline came amid growing uncertainty over geopolitical developments in West Asia and concerns about the effectiveness of ongoing diplomatic efforts between the United States and Iran. Market participants adopted a cautious approach, leading to broad-based selling in equities, particularly in information technology and metal stocks.

Among the major laggards on the Sensex were Infosys, TCS, HCL Technologies, Tata Steel, Bharat Electronics and Adani Ports. The sharp fall in IT stocks played a significant role in dragging benchmark indices lower as investors reduced exposure to sectors sensitive to global economic conditions.

Sector-wise, the Nifty IT and Metal indices emerged as the biggest losers during the session. In contrast, the pharmaceutical sector offered some resilience, with the Nifty Pharma index gaining nearly 1% as investors sought defensive opportunities amid market volatility.

IT Stocks Under Pressure

Technology companies faced significant selling pressure due to concerns about global demand and uncertainty in international markets. Analysts noted that any slowdown in major overseas economies could impact earnings prospects for export-oriented IT firms, prompting investors to book profits.

Metal stocks also witnessed weakness as traders monitored developments in global commodity markets and economic growth forecasts. The sector remained sensitive to changing expectations regarding industrial demand and trade activity.

Global market cues further added to investor caution. Most Asian markets ended in negative territory. South Korea's KOSPI index recorded the sharpest decline, falling more than 4%, while Japan's Nikkei and Hong Kong's Hang Seng also closed lower.

Oil Prices and Currency Movement

Despite geopolitical tensions, crude oil prices remained below the $80 per barrel mark. Brent crude continued trading significantly below the highs witnessed during the recent Iran conflict, offering some relief to oil-importing economies such as India.

Meanwhile, the Indian rupee weakened by 11 paise during the session to close at 94.74 against the US dollar. However, the currency has appreciated nearly 3% over the past month, supported by improving capital flows and easing pressure from global energy prices.

According to market data, foreign institutional investors (FIIs) have purchased shares worth approximately ₹3,300 crore over the last seven trading sessions, indicating selective confidence in Indian equities despite near-term volatility. Domestic institutional investors (DIIs) also remained net buyers, helping cushion the overall market decline.

In the primary market, investor attention shifted to the opening of the Waterways Leisure Tourism Limited IPO. The company, which operates Cordelia Cruises in India, launched its public issue with plans to raise ₹585 crore. The IPO will remain open for subscription until June 25, with a price band fixed between ₹769 and ₹808 per share.

Market experts believe investors will continue to monitor geopolitical developments, crude oil prices, foreign investment trends and corporate earnings for further direction. While short-term volatility may persist, analysts maintain that domestic economic fundamentals remain a key support for the broader market outlook.

The sharp Sensex crash and Nifty decline underscore the influence of global developments on investor sentiment, making upcoming international and domestic policy signals crucial for market direction in the coming weeks.

The Indian equity benchmarks opened on a weak note and extended losses through the session on Friday, with heavy selling in IT stocks pulling the markets sharply lower.

The BSE Sensex tumbled nearly 800 points to trade around 76,600 levels. The NSE Nifty slipped below the key 24,000 psychological mark and was seen hovering near 23,950. 

IT shares bore the maximum brunt. Infosys crashed up to 8 per cent, while TCS, Tech Mahindra, and HCL Technologies fell between 5-6 per cent. The Nifty IT index plunged over 5 per cent, becoming the worst performing sectoral index of the day.

According to preliminary information, the sell-off in domestic IT counters followed weak global cues after Accenture’s disappointing outlook weighed on investor sentiment towards the sector. 

Sectoral performance remained mixed. While Nifty Chemicals, Healthcare, Pharma, and Media managed to stay in positive territory or limit losses, most other indices traded in the red.

Oil prices traded flat on Friday with Brent crude continuing to hover below the $80 per barrel mark. The global benchmark has fallen nearly 38 per cent from its Iran war highs of $126 per barrel, offering some comfort on the inflation front for India.

Asian markets showed a mixed trend in early trade. The KOSPI and Nikkei closed in the green, while the Hang Seng slipped into negative territory.

Wall Street, meanwhile, ended on a firm note on Thursday. The Dow Jones, Nasdaq, and S&P 500 all posted gains, with the tech-heavy Nasdaq rising nearly 2 per cent.

Back home, the rupee showed resilience. The local currency rose 20 paise to 94.20 against the US dollar on Friday. Currency traders noted that the rupee has gained nearly 3 per cent in the last one month, supported by easing oil prices and steady foreign inflows in recent weeks.

The sharp reversal on Friday comes after a decent session on Thursday. On June 18, the Sensex closed at 77,410, up 254 points, while the Nifty settled at 24,168, gaining 82 points.

Market participants are closely watching global cues and upcoming corporate earnings. Further details on the extent of the sell-off and any institutional flows are awaited. The investigation into broader market volatility, if any, remains ongoing as traders assess the sustainability of the recent rally.

The correction in IT majors highlights the sector’s sensitivity to global tech spending trends. With several Indian IT firms heavily dependent on US and European clients, any slowdown in discretionary spending or guidance cuts abroad tends to reflect quickly on Dalal Street. 

At the same time, lower crude prices could support other segments like auto, consumer goods, and banks by keeping input costs in check. Whether this provides enough counterweight to the IT drag will decide the market’s near-term direction.

As of now, sentiment remains cautious with traders preferring to stay light ahead of the weekend.

Indian equity markets extended their winning streak on Thursday as investors responded positively to global developments, particularly the easing of geopolitical tensions in the Middle East. The benchmark BSE Sensex gained 254.36 points to close at 77,409.98, while the NSE Nifty settled comfortably above the key 24,000-mark, reflecting sustained investor confidence.

The latest gains came after reports confirmed that the United States and Iran had signed a memorandum aimed at ending the recent conflict between the two nations. The development has been closely watched by global financial markets because of its potential impact on energy supplies and inflation trends worldwide.

According to market participants, the decline in crude oil prices played a significant role in supporting investor sentiment. Lower oil prices are generally viewed as beneficial for the Indian economy, which relies heavily on crude imports. Reduced energy costs can help contain inflation, improve corporate profitability, and ease pressure on the country's trade balance.

Oil Prices Ease

Global crude oil prices witnessed a sharp correction following the peace agreement. Brent crude, the international benchmark, slipped to around $77 per barrel, marking its lowest level in more than three months. Market data indicates that oil prices have fallen significantly from the highs recorded during the peak of the Iran conflict.

The agreement was signed by Iranian President Masoud Pezeshkian after US President Donald Trump formally endorsed the framework in Versailles, France. Reports suggest that investors interpreted the development as a major step toward restoring stability in global energy markets.

The decline in crude prices also helped offset concerns arising from weakness in certain sectors of the domestic market. Analysts believe that if oil prices remain under control, sectors dependent on fuel and transportation costs could see improved earnings prospects in the coming quarters.

Mixed Sector Performance

Despite the overall gains in benchmark indices, sectoral performance remained mixed. Information Technology stocks emerged as the weakest segment of the market, witnessing notable selling pressure during the session. Consumer Durables and Oil & Gas shares also traded in negative territory.

On the other hand, media-related stocks recorded strong gains, helping support broader market sentiment. Other sectors displayed selective buying as investors shifted their focus toward companies expected to benefit from improving economic conditions.

Asian markets delivered mixed signals. South Korea's KOSPI and Japan's Nikkei posted gains, while Hong Kong's Hang Seng index ended lower. Meanwhile, US markets had closed in negative territory during the previous session, with the Dow Jones, Nasdaq, and S&P 500 all recording losses.

Foreign institutional investors continued to remain cautious. Data showed that foreign investors have been net sellers over the past week, while domestic institutional investors maintained their buying momentum. Market experts believe strong domestic participation has helped offset foreign outflows and provided stability to Indian equities.

The Indian currency also faced pressure during the day. The rupee weakened by 21 paise and settled at 94.71 against the US dollar. Currency traders attributed the decline to global dollar strength and ongoing volatility in international markets.

Looking ahead, investors are expected to closely monitor crude oil movements, global economic developments, and institutional investment flows. Market participants will also keep an eye on upcoming corporate earnings and macroeconomic indicators that could influence trading direction in the near term.

With the Indian stock market recording gains for five consecutive sessions, attention will now shift to whether benchmark indices can sustain their momentum amid evolving global and domestic factors.

Foreign portfolio investors (FPIs) have intensified their selling spree in the Indian capital markets, pulling out a staggering ₹62,853 crore from equities in just the first 15 days of June.

Data released by the National Securities Depository Limited (NSDL) reveals that this latest round of selling has pushed the total foreign fund outflow from Indian equities to an unprecedented ₹2.87 lakh crore in 2026 so far. The aggressive offloading marks a sharp escalation compared to the entire calendar year of 2025, which saw a comparatively lower withdrawal of ₹1.66 lakh crore.

Global headwinds trigger risk aversion

Market observers point out that a combination of escalating geopolitical frictions, lingering concerns over global macroeconomic growth, and a persistently weak domestic currency have soured sentiment for overseas investors. The sustained exit highlights a broader rebalancing strategy among global fund managers.

"Investors are currently navigating an environment of extreme uncertainty regarding the future of interest rates of major central banks, geopolitical developments, and global growth," said Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India.

Premium valuations squeeze allocations

Apart from global triggers, India’s own market dynamics have prompted overseas fund managers to recalibrate their exposure. Analysts notes that Indian equities have been trading at a premium relative to several other emerging market peers, making the risk-reward ratio less attractive in a high-interest-rate environment.

This expensive valuation has forced FPIs to adopt a highly selective and cautious allocation strategy. Rather than broad-based buying, funds are moving capital toward developed markets and safer, fixed-income assets to shield portfolios from emerging market volatility.

Currency depreciation worsens outflows

The sharp depreciation of the domestic currency has further compounded the exodus. Despite consistent interventions by the Reserve Bank of India (RBI) to check volatility and stabilize trading bands, the rupee has weakened by nearly 6% since the start of 2026, and around 10% over the past twelve months.

Rupee vs US Dollar Trajectory (Recent Trend)

[Mid-80s Level] -------- 6% YTD Decline --------> [Near 95 Level]

Moving from its previous mid-80s comfort zone, the currency has slipped to nearly 95 against the US dollar. This persistent slide erodes dollar-denominated returns for foreign funds, effectively forcing tactical exits from the cash market.

Selling pressure shows late moderation

While the aggregate numbers for June paint a grim picture, the pace of liquidation showed visible signs of deceleration toward the end of the second week. The tapering indicates that while risk-aversion remains the dominant theme, the absolute intensity of institutional selling might be hitting a temporary plateau.

On Friday, net FPI outflows in the cash market dropped to a modest ₹1,082 crore. This is a substantial reduction from the heavy multi-thousand-crore sessions witnessed earlier in the month, offering a brief breathing space for domestic institutional investors (DIIs) who have been absorbing the selling pressure.

Crude correction offers macro relief

On the macroeconomic front, a sharp correction in international oil benchmarks has provided a silver lining. Brent crude prices have slipped below the $87 per barrel mark, driven by recent diplomatic developments and expectations surrounding a potential peace framework between the US and Iran.

"For a large oil-importing country like India, this is major positive news," stated V K Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that the drop in energy costs comes at a crucial time, given that India is currently navigating a balance of payments deficit estimated at approximately $60 billion for FY27.

Policy interventions to support capital

Recognizing the vital role FPI flows play in managing the Current Account Deficit (CAD) and balancing external accounts, the government and the central bank have rolled out targeted administrative measures.

                 Key Policy Steps to Stabilize Capital Flows            

|  RBI to absorb hedging costs on FCNR deposits raised by commercial banks|

|  Expansion of the operational scope of the forex swap window           |

|  Easing of investment limits for NRIs and OCIs in the equity segment   |

|  Streamlining access to government securities via the FAR channel     |

Debt market provides counter-balance

Interestingly, while foreign capital is fleeing Indian equities, it is finding a steady home in the domestic debt segment. In contrast to the equity rout, foreign investors pumped over ₹13,200 crore into debt securities via the Fully Accessible Route (FAR) during the first half of June.

This fixed-income inflow has pushed total debt investments through the FAR channel to roughly ₹28,000 crore for the current calendar year, underscoring foreign institutional confidence in India's sovereign bond yields despite equity market turbulence.

Key triggers for the coming week

Going forward, the direction of foreign fund flows will likely be dictated by a busy global regulatory calendar. According to Pavitra Mukherjee, Deputy Vice President-Research at Bajaj Broking, institutional desks will closely track four key variables:

• The progress of ongoing geopolitical negotiations between the US and Iran.

• The upcoming policy rate decision and commentary from the US Federal Open Market Committee (FOMC).

• The Bank of Japan’s (BOJ) monetary policy stance and interest rate trajectory.

• Forward-looking policy guidance from other systemic central banks.

Fresh hostilities between Iran and Israel send shockwaves across world markets; Brent crude surges past $97, South Korea's Kospi sinks 8%

Markets Open in the Red

Indian equity markets were jolted into a steep sell-off on Monday, 8 June 2026, as renewed hostilities between Iran and Israel sparked a sharp risk-off mood across global financial markets. The BSE Sensex crashed 719 points to settle at 73,524.26, while the NSE Nifty50 slumped roughly 1% to close at 23,123 points — its sharpest single-session decline in recent weeks.

The selling was broad-based and swift. Blue-chip names bore the brunt of the fall, with TCS, Eternal, Mahindra & Mahindra, IndiGo, Bajaj Finance, and Larsen & Toubro among the prominent losers on the Sensex. Investor sentiment soured quickly through the morning session, and there was little recovery through the day.

Sectoral Pain, With Pockets of Resilience

Across the NSE's sectoral indices, the damage was widespread. Nifty Realty led the losses, tumbling nearly 2%, followed by declines across financial services, auto, and IT. Only Nifty Pharma, PSU Bank, and Healthcare managed to hold their ground and end Monday in positive territory — a thin silver lining in an otherwise bruising session.

Iran-Israel Exchange Ignites Market Fear

The trigger was unmistakable. Israel launched military strikes on Iran on Monday, following a wave of Iranian missiles targeting Israeli territory. Tehran accused Israel of repeatedly violating a ceasefire agreement through its ongoing operations in Lebanon. The exchange drew fresh condemnation internationally, with reports indicating the attacks proceeded despite a direct appeal from US President Donald Trump to de-escalate.

The geopolitical flare-up instantly introduced a new layer of uncertainty into an already fragile global environment, sending investors scrambling toward safer assets and away from equities.

Oil Prices Surge Past $97

Energy markets reacted sharply. Global benchmark Brent crude surged over 4% to $97.19 per barrel, while West Texas Intermediate climbed 3.35% to $93.89. The spike reflects growing anxiety over supply disruptions in the Middle East — a region that remains central to global oil flows. Higher crude prices also add inflationary pressure to import-heavy economies like India, compounding concerns for domestic markets.

Asian Markets in Freefall

The carnage was not limited to Dalal Street. South Korea's Kospi bore the sharpest blow, plunging 8% — a level that typically triggers circuit breakers — to settle at 7,768 points, down 375 points. Japan's Nikkei fell 3.83% to 64,040, losing over 2,500 points in a single session. Hong Kong's Hang Seng declined a more moderate 1.01% to 24,700.

Wall Street Had Already Signalled Trouble

The rout had been foreshadowed on Friday. US markets ended last week under significant pressure — the Dow Jones Industrial Average slid 695 points (-1.35%) to 50,867, the S&P 500 shed 201 points (-2.64%) to 7,384, and the tech-heavy Nasdaq took the hardest hit, falling 1,122 points (-4.18%) to 25,709. That Wall Street selloff set a grim tone heading into Monday's Asian and Indian sessions.

FIIs Pull Back Sharply

Foreign institutional investors have been pulling money out of Indian equities at a notable pace. On 5 June, FIIs and FPIs recorded a net outflow of ₹8,776 crore. Over the last seven days, cumulative FII selling reached ₹27,203 crore, and over the past month the figure stands at a substantial ₹76,006 crore. Domestic institutional investors have been providing partial cushioning — buying ₹9,134 crore on the latest session and ₹95,209 crore over the past 30 days — but have not been able to fully offset the foreign outflows.

Rupee Under Pressure

The Indian rupee also weakened under the day's pressure, falling 17 paise to 95.35 against the US dollar in early trade on Monday, reflecting the combined effect of FII outflows, rising oil import costs, and broader dollar strength in a risk-averse global environment.

Market participants will closely track developments in the Middle East through the week, with any further escalation likely to deepen the sell-off across emerging market equities including India.

Israel launched strikes on military targets in western and central Iran early Monday, according to the Israeli military, after Iran fired a wave of missiles at northern Israel — a significant escalation that has reverberated across the region and pushed oil prices higher.

Strikes reported across Iran
The Israeli armed forces said the strikes hit military installations in western and central provinces. State media in Iran and local broadcasters reported explosions in Tehran, Tabriz and Isfahan in the early morning hours, and the Islamic Revolutionary Guard Corps (IRGC) said Israel used air-launched ballistic missiles in the attacks, the IRNA news agency reported.

Iranian emergency services and the Iranian Red Crescent said they were on standby to deal with any fallout. “Rapid response teams, logistical, relief and medical facilities are standing by following this morning’s strikes,” the Red Crescent said on X. There were no immediate independent confirmations of casualty figures.

Why it happened
Initial reports indicate the Israeli strikes were retaliatory. Earlier on Monday Iran launched missiles at northern Israel — the first such barrage since the April ceasefire — citing repeated Israeli actions in Lebanon that Tehran said violated the truce. Iranian officials described the missile fire as a response to what they called ongoing Israeli aggression.

According to regional analysts and Western officials, the sequence of attacks marks one of the sharpest direct exchanges between Israel and Iran since the broader round of hostilities began in spring. “This is a rapid escalation in a conflict that has largely been proxied through militia groups until now,” a Western diplomat familiar with the situation said, speaking on condition of anonymity.

US and allies respond
The United States reported shooting down two Iranian drones over the Strait of Hormuz in the past 48 hours, citing threats to international shipping, and CENTCOM said those actions were taken to protect commercial vessels. US President Donald Trump, in a telephone interview with the Financial Times, said Israeli Prime Minister Benjamin Netanyahu would have “no choice” but to accept any deal the United States negotiates with Iran. “He won’t have any choice. I call the shots,” Trump said, adding the strikes would not derail US-Iran negotiations.

Regional disruptions
Several countries moved quickly to protect civil aviation and shipping. Iran closed western airspace until further notice; neighbouring Iraq closed its airspace for 72 hours and Syria for 12 hours. Saudi authorities issued alerts in parts of Riyadh province after reports of an explosion near Al Kharj, though Iranian state media denied firing on the Saudi base.

Markets reacted immediately. Brent crude rose about 3.6% within an hour of the strikes being reported, trading near $96–97 a barrel, while West Texas Intermediate climbed more than 3%.

Ground-level picture
Residents in Tehran and Isfahan reported hearing explosions early on Monday; social media carried video clips of shockwaves and emergency responders at sites around the affected cities. Local hospitals and civil defence agencies were placed on alert as authorities assessed damage.

Analysts warned the risk of miscalculation is high. “When both sides begin striking each other’s territory directly, there’s a narrower margin to prevent wider conflict,” said a regional security analyst in New Delhi. “Escalation can spread quickly through allied militias and third-party actors.”

What happens next
Diplomatic channels are expected to be active in coming hours and days. Western capitals and regional powers are likely to call for restraint while assessing whether the strikes were targeted at military infrastructure only or intended to undermine Iran’s wider capabilities.

Iran has long demanded guarantees over its right to enrich uranium and the release of frozen assets as part of talks with the US; Tehran also accused shifting US positions of stalling negotiations. How the strikes influence those talks remains unclear — President Trump said they would not alter his push to conclude a deal.

For ordinary people in the region the immediate concern is safety and disruption: flights, cross-border trade and oil shipments may face short-term interruptions, and any sustained exchange could compound an already fragile security situation.

Sources and attribution
Details in this report are based on statements from the Israeli military, Iranian state agencies including IRNA, the Iranian Red Crescent, CENTCOM briefings, and statements from US officials and media interviews. Local eyewitness accounts and market data on crude prices were also consulted.

Indian equity markets remained closed on Thursday on account of Bakrid, while commodity (MCX) trading will resume later in the evening, market officials confirmed. The holiday came as Asian stock indices slid sharply and crude oil prices jumped amid renewed tensions in the Middle East, denting investor sentiment ahead of the weekend.

Markets closed for Bakrid

The BSE and NSE did not operate on Thursday because of the Bakrid public holiday, a routine annual closure. Commodity exchanges, including MCX, were inactive until late afternoon; trading is scheduled to restart at 5:00 pm IST, exchange notices showed. Stock broking desks said most overseas markets were open, leaving Indian investors to track global cues remotely.

Asian markets slide

Asian equities suffered notable declines on Thursday. South Korea’s KOSPI dropped about 3.1% in early trade, while Hong Kong’s Hang Seng fell roughly 2.3% and Japan’s Nikkei eased around 1.2%, exchange feeds indicated. Market strategists linked the weakness to a sharp rise in crude oil and lingering geopolitical worries after fresh US-Iran tensions.

US markets firmed; mixed signals

Wall Street closed modestly higher on Wednesday, with the Dow Jones adding 0.36% and the Nasdaq nearly flat, data showed. But that limited uplift failed to translate into Asian gains overnight. “US markets were steady, but the spike in oil and heightened risk aversion in Asia outweighed the follow-through,” a Hong Kong-based strategist said on condition of anonymity.

FIIs net sellers

Data compiled by exchange sources showed continued foreign institutional investor (FII/FPI) outflows. Over the past 30 days, FIIs sold equities worth about ₹45,374 crore, while domestic institutional investors (DIIs) remained net buyers, purchasing roughly ₹71,654 crore over the same period. In the latest seven-day window, FIIs were net sellers to the tune of around ₹7,069 crore, compared with DII buys of ₹15,043 crore.

Domestic indices fell earlier

On Wednesday, when markets were open, the BSE Sensex closed down 142 points at 75,868 and the Nifty 50 slipped 7 points to finish at 23,907. Banking stocks underperformed, brokers said, reflecting profit-taking after a recent rally and sensitivity to macro and liquidity expectations.

Crude surge fuels concerns

A key immediate trigger was a near 4% rise in Brent crude to about $98 per barrel on Thursday, traders said, citing renewed US-Iran tensions. Higher oil directly affects inflation and input costs globally and is particularly sensitive for India, which imports an estimated 80–85% of its crude needs. “When oil spikes, the trade deficit and inflation outlook worsen, the rupee can weaken, and corporate margins—especially for fuel-intensive sectors—come under pressure,” an equity economist noted.

Why oil hits Indian markets

Analysts explained that rising crude increases import bills, pressuring the rupee and raising costs for manufacturers, transporters and airlines. That squeezes corporate profits and can erode equity valuations. Retail inflation risks could also prompt tighter monetary stance expectations, adding to investor caution.

Ground-level cues

On the trading floors and at brokerage firms in Mumbai’s Dalal Street, traders spent the holiday monitoring late-session commodity trades and global headlines. “We were more focused on oil and flows from FIIs. With markets closed, clients expect a quiet holiday but want updates before the close in the US,” said a Mumbai broker who declined to be named.

What to watch next

Market participants will watch MCX’s evening session for any volatility in energy contracts and refine positions ahead of Friday’s truncated session. The rupee’s movement versus the dollar, upcoming US economic data, and any further geopolitical developments will be key near-term drivers. Investors will also track central bank commentary and domestic macro prints that could influence DII behavior.

For now, the Bakrid holiday gave local investors a pause to reassess exposures while global factors—especially a resurgent crude oil price—kept risk sentiment subdued. If oil maintains elevated levels into next week, strategists warn, Indian markets may face renewed pressure once trading resumes fully.

India’s rupee slid past the 96-per-dollar mark for the first time on Friday, trading at a record low of 96.07, as a string of external shocks and investor flows put sustained pressure on the currency.

Rupee hits record low

The rupee hit 96.07 against the US dollar during Friday’s late-morning trade in Mumbai, according to exchange data. The local unit has weakened steadily since the start of 2026, with traders and analysts pointing to a mix of higher oil prices, geopolitical risk in West Asia, and a firming dollar as the main drivers.

Immediate market drivers

Brent crude rose above $107 a barrel this week, exacerbating India’s import bill at a time when the country relies on imports for more than 85% of its crude needs. “Higher crude means larger dollar outflows to pay for oil, and that pressure shows up in the rupee,” said a currency strategist at a private bank, speaking on condition of anonymity.

At the same time, tensions in West Asia — particularly heightened strain between the US, Israel and Iran — have raised fears of supply disruptions through the Strait of Hormuz. That geopolitical risk pushed investors toward the dollar as a safe haven, strengthening the Dollar Index to around the 99 mark this week. A stronger dollar typically weighs on Asian currencies, including the rupee.

Capital flows and domestic impact

Foreign institutional investors remained net sellers of Indian equities, with initial exchange reports showing heavy FII outflows this week. On Wednesday, FIIs reportedly sold more than ₹4,700 crore of stock, draining dollar liquidity from local markets and adding downward pressure on the rupee.

The currency weakness has immediate consumer-facing effects. Higher import costs mean petrol, diesel and many imported goods could become pricier, fuelling the risk of “imported inflation.” India’s Wholesale Price Index recently hit a multi-year high, and analysts warn that sustained currency weakness combined with rising energy costs could aggravate inflationary pressures into the coming months.

Ground-level cues

On the trading floor in Mumbai on Friday morning, dealers said demand for dollars was broad-based — from oil marketing companies covering import bills to corporates managing external debt payments and individuals buying foreign exchange for travel or education overseas. “We’re seeing more spot dollar demand compared with relief flows,” one dealer said.

Policy levers and reserves

India’s foreign exchange reserves provide a buffer, but economists note that interventions can be costly if pressures persist. The Reserve Bank of India (RBI) has in the past used its reserves and forward market operations to smooth sharp currency moves. Officials did not immediately comment on any intervention late Friday.

Analysts say much depends on global factors beyond India’s control: a sustained rise in crude, continued escalation in West Asia, or further tightening in US monetary policy would all keep the rupee under strain. Domestic economic indicators and RBI policy responses will shape market expectations as well.

Outlook and risk scenarios

Market experts warn the rupee could test the 100-per-dollar level if crude prices keep climbing and geopolitical tensions do not ease. “Reaching 100 is not inevitable, but it’s within the risk set if current trends persist,” said a macroeconomist at a Mumbai research firm.

For households and businesses, a prolonged weak rupee would increase costs for imported inputs — from fuel to electronics — and raise the rupee amount needed for overseas travel and education. Exporters could benefit from a weaker currency, but much depends on global demand conditions and whether exporters face higher input costs in dollars.

What to watch next

Traders will watch crude price moves, developments in West Asia, and US dollar strength for near-term direction. Domestically, RBI commentary and monthly macro data — including inflation prints and foreign exchange reserve updates — will be closely monitored for signs of policy shifts or intervention.

As the market digests this week’s developments, the rupee’s slide underscores how interconnected global geopolitics, commodity markets and capital flows have become for India’s external balance and price dynamics.

US-Iran Clashes Flare in Strait of Hormuz, Trump Insists Ceasefire Holds

Vessels ablaze, oil prices spike as attacks test fragile truce amid stranded ships and global fears

Multiple vessels caught fire near the Strait of Hormuz on Friday after fresh US-Iran clashes, even as President Donald Trump insisted the ceasefire remains "in effect." NASA's FIRMS satellite detected fire activity across several spots following missile and drone exchanges, with UAE air defences activated amid blasts off Abu Dhabi coast. The incidents, unfolding just hours apart, have stranded nearly 1,500 ships and pushed Brent crude above $101 a barrel.

Vessels Ablaze Off Hormuz

Reports emerged around 12:22 PM IST of vessels burning near the strategic waterway, a chokepoint for 20% of global oil. Initial satellite imagery showed flames at multiple locations, linked to overnight attacks between US warships and Iranian assets. US Central Command confirmed Thursday's retaliatory airstrikes hit Iranian missile sites, drone launch pads, and command centres after three American destroyers faced "provocative attacks" while transiting the strait.

No casualties were reported from the US side. Trump, posting on Truth Social, described the destroyers as unscathed, with Iranian drones falling "like a butterfly dropping to its grave." He called the strikes a mere "love tap," but warned of "a lot more violent" responses if no deal comes fast.

UAE on High Alert

The UAE scrambled air defences Friday morning as explosions echoed off Abu Dhabi, where US assets are based. The defence ministry's Arabic statement on X noted "ongoing engaging operations of missiles and UAVs," with sounds ringing across the country. Authorities urged vigilance but reported no direct hits on mainland soil. Separately, UAE firm Gulf Marine Services logged a 24% Q1 profit drop to $19.5 million, blaming vessel evacuations from a GCC nation in March amid the war.

Local sources said the nation is compiling a record of Iranian attacks for future legal action, via a new national committee.

Trump: Ceasefire Intact, Deal Possible

Trump doubled down on the truce holding, despite Iran's top command accusing the US of violating it by hitting an oil tanker and civilian areas. "The ceasefire is going. It's in effect," he told US media, framing strikes as defensive. He dismissed talk of a "one-page offer" to Tehran, calling it broader—demanding no nuclear weapons and handover of "nuclear dust."

Sources familiar with the matter point to backchannel talks via Pakistan for a 30-day halt to hostilities, keeping Hormuz open while permanent negotiations run. Trump signalled willingness to negotiate, but only if Iran acts quickly.

Stranded Ships, Sailor Fears

The UN's IMO estimates 1,500 vessels stuck in the region, crippling oil and gas chains. Food shortages worsen in places like Somalia. Indian sailors aboard a cargo ship in Iran's Shatt al-Arab waterway spoke of terror to Al Jazeera: "We've seen war, missiles, everything. We're mentally exhausted." Stuck for 10 weeks over unpaid wages, they survive on potatoes, onions and bread; some escaped via Iran-Armenia border, but 20,000 sailors region-wide remain trapped.

Pakistan seeks repatriation of 11 Pakistani and 20 Iranian crew from US-seized vessels, coordinating with mediators.

Oil Surge, Wider Fallout

Brent crude jumped 7.5% Thursday to $103.70 before easing to $101.12 by Friday Asia open—up 40% since the war's oil shortfall hit 14.5 million barrels daily. One tanker reached South Korea after dodging the blockade, first since Iran shut the strait in late February.

Japan's MOL confirmed its ships crossed without Tehran's proposed fees, via stakeholder coordination; two India-flagged LPG carriers followed suit.

Regional Tensions Spill Over

Iran's VP Mohammad Reza Aref claimed a "great victory" soon, with sanctions lifted, per state media. Meanwhile, Israel-Hezbollah fighting reignited: IDF killed Hezbollah's Radwan unit commander in Beirut, ordered Lebanese evacuations, and shelled south Lebanon sites. A Lebanese civil defence member died in an airstrike.

UN drama brews too—Russia and China poised to veto a US-Bahrain resolution on Hormuz freedom; Iran slammed it as "one-sided."

Sanctions and Standoff

US hit new sanctions on Iraq's deputy oil minister and Iran-linked firms for oil trades aiding proxies. As ships idle and prices climb, eyes turn to talks. Will the 30-day proposal break the deadlock, or fuel more fire in Hormuz?