Investors in the Indian stock market sold big, triggering benchmark indices to decline by 1.4% as crude prices breached $100 per barrel on Monday (March 9, 2026), expecting a protaction of the U.S.-Israel war on Iran.

The 30-share BSE Sensex tanked 1,352.74 points, or 1.71%, to settle at 77,566.16, registering its second day of decline. On similar lines, the 50-share NSE Nifty dropped 422.40 points, or 1.73%, to end at 24,028.05.

West Asia conflict oil hike, market reactions LIVE updates

Barring Nifty IT, all the sectoral indices fell; some of them, such as the Auto Index, closed down by 4.1%. While Brent crude futures rose 10%, closing at $102.69 a barrel in a single session. Oil prices have surged consistently for more than a week, as Iran shut down the Strait of Hormuz, the route that supplies a fifth of global oil needs.

The fear of broad sectoral impact and their second order effects were reflected in the market with almost all indices opening and trading below their previous closes. 

Israel-Iran war LIVE updates

The bottleneck has not only raised crude prices, but it has also increased uncertainties regarding the sustained supply of oil and natural gas, which, if the conflict prolongs, may even lead to plant shutdowns, experts have been warning.

“Escalating tensions between Iran and Israel and the resulting instability in the Middle East heightened global risk aversion, weighing on investor confidence.

For India, the sharp move in crude prices raises concerns over higher inflation, a widening current account deficit and potential pressure on economic growth, all of which dampened market sentiment,” said  Siddhartha Khemka, Head of Research at Wealth Management, Motilal Oswal Financial Services Ltd.

The rupee too depreciated 58 paise to close at an all-time low of ₹92.35 a dollar. “Mirroring weakness in Asian currencies, the Rupee tumbled 59 paise to a record 92.33 against the USD, fueled mainly by crude’s surge past $100/barrel, levels unseen since 2022. These soaring energy costs pose a significant threat to India’s trade deficit, GDP growth, and inflation, given the country’s high reliance on oil imports,” said Nandish Shah, Deputy Vice President, HDFC Securities