Oil shock sends markets into a tailspin; Nifty tanks 422 points, Rupee hits record low

Markets suffered one of their worst single-day selloffs of 2026 on Monday as a catastrophic surge in global crude oil prices, triggered by escalating US-Iran conflict, sent benchmark indices tumbling, the rupee to a record low, and volatility to its highest in nearly nine months.

The BSE Sensex crashed 1,352.74 points, or 1.71 per cent, to close at 77,566.16, while the Nifty 50 fell 422.40 points, or 1.73 per cent, to settle at 24,028.05.

The Nifty opened with a gap-down of nearly 585 points before sliding to an intraday low of 23,697.80, recovering over 330 points late in the session to claw back above 24,000. Year-to-date, the Nifty is now down 8.10 per cent.

The trigger was unmistakable. Brent crude surged to approximately $119 per barrel — the highest since July 2022 — as the US-Israel conflict with Iran entered its 10th day with no signs of de-escalation.

WTI crude jumped nearly 30 per cent in a single session. Shipping through the Strait of Hormuz was suspended, Saudi Arabia shut its largest refinery, Qatar halted LNG operations, and the UAE and Kuwait joined Iraq in output cuts — collectively threatening to remove over 4 million barrels per day from global supply.

The Indian rupee weakened to a record low, opening near 92.20 against the US dollar and sliding to 92.528 during early trade as higher crude import costs drove up dollar demand. India VIX surged over 17 per cent to 23.59 — its highest since June 2024 and more than 70 per cent higher within a week.

Ajit Mishra, SVP Research at Religare Broking, said: “...Auto, banking, and metal stocks were among the major losers, while a few defensive pockets such as IT and pharma showed relative resilience... The spike in oil prices, weakness in the rupee, and continued FII selling further intensified the sell-off...”

Sectorally, Nifty PSU Bank and Nifty Auto led losses, falling 2–4 per cent, along with Capital Goods, Metal, Oil & Gas, and Private Bank indices. Only Nifty IT held ground. Nifty Midcap 100 and Smallcap 100 each fell nearly 2 per cent. On BSE, 3,379 stocks declined against 972 advances, with 875 stocks hitting 52-week lows.

On the Nifty 50, top gainers were Wipro (+1.64 per cent to ₹198.60), Reliance Industries (+0.98 per cent to ₹1,418.60), Apollo Hospitals (+0.86 per cent to ₹7,791), Infosys (+0.58 per cent to ₹1,316), and HCL Technologies (+0.42 per cent to ₹1,362.40).

Major losers were Tata Motors (-5.27 per cent to ₹332.25), UltraTech Cement (-5.25 per cent to ₹11,358), Maruti Suzuki (-4.67 per cent to ₹13,498), Eicher Motors (-4.53 per cent to ₹7,275), and M&M (-4.44 per cent to ₹3,184.50). Oil marketing companies — IOC, BPCL, and HPCL — also came under pressure as higher crude prices threatened to squeeze margins.

Gold fell 1.07 per cent to $5,097.91 per ounce (approximately ₹1,51,203 per 10 grams), while silver declined 0.54 per cent to $83.44 per ounce (around ₹2,47,494 per kg).

Kaynat Chainwala, AVP Commodity Research at Kotak Securities, noted that dollar strength and margin-call-driven liquidations weighed on precious metals despite the geopolitical turmoil, adding: “...If geopolitical tensions begin to ease, the current dollar strength may fade... creating room for gold and silver to stage a rebound...”

Technically, the Nifty has broken below the 100-week EMA at 24,050. Hitesh Tailor, Technical Research Analyst at Choice Broking, warned: “...If geopolitical tensions continue to escalate, the Nifty 50 could extend its decline toward the 23,000–22,900 zone... any relief rally towards 24,300–24,500 may face supply and profit-booking pressure...”

Looking ahead, upcoming US data — including CPI, Core PCE, and JOLTS Job Openings — could shape Federal Reserve rate-cut expectations, but geopolitical developments in West Asia are likely to dominate market direction. Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, summed it up: “...Market sentiment is likely to remain fragile in the near term as investors closely monitor developments in the West Asia and their potential implications for global energy markets and inflation...”

Published on March 9, 2026