Sensex Plunges Over 1,000 Points, Nifty Falls Below 24,500 - Geopolitical Tensions Drive Market Turmoil

This marked a continuation of the week's losses, with both indices extending declines for several consecutive days amid the Middle East crisis. On Friday, March 6, 2026, Indian equity benchmarks endured a sharp sell-off, with the BSE Sensex tumbling more than 1,000 points intraday and the NSE Nifty 50 slipping below the 24,500 level amid heightened volatility. The decline reflected ongoing investor unease over the escalating US-Israel-Iran conflict in West Asia, which has driven crude oil prices higher and triggered risk aversion across global markets. As of 3:03 PM IST, the Sensex was trading down around 756–1,000+ points (approximately 0.95–1.34%), hovering near 79,259–79,392 levels after hitting intraday lows. The Nifty 50 fell 0.84–1.02%, or roughly 207–253 points, to trade at 24,557–24,512, breaching the psychologically important 24,500 mark during the session. This marked a continuation of the week's losses, with both indices extending declines for several consecutive days amid the Middle East crisis.The India VIX (NSE's volatility index, often called the "fear gauge") surged sharply, jumping as much as 11.31% to 19.88 intraday—the highest levels seen in recent months (up from around 17–19 earlier in the week). This spike signaled elevated uncertainty and panic selling, with the index reflecting traders' expectations of continued swings. Sector performance was mixed but predominantly negative. Realty stocks led the declines, with the Nifty Realty index down nearly 2%, dragged by heavy selling in names like Godrej Properties, The Phoenix Mills, and Prestige Estates Projects. Banking and financial services also weighed heavily, with the Nifty Private Bank and Nifty Financial Services under pressure. Top losers in the Nifty 50 included InterGlobe Aviation (IndiGo), ICICI Bank, and Max Healthcare Institute. In contrast, the Nifty IT sector bucked the trend, rising 0.34% supported by gains in Persistent Systems and Infosys. Broader indices like Nifty MidCap and Nifty SmallCap traded lower by 0.47% and 0.06%, respectively.Key gainers in the Nifty 50 included Bharat Electronics, Reliance Industries, and NTPC, offering some pockets of resilience amid the broader rout.The primary catalyst for the plunge was the ongoing US-Iran war, now in its second week following joint US-Israeli strikes starting late February 2026. Iran's retaliatory attacks on Gulf oil infrastructure—including refineries in Saudi Arabia (Ras Tanura), Qatar (Ras Laffan and Mesaieed), UAE (Fujairah), and Bahrain (Bapco)—have disrupted energy supplies and pushed Brent crude prices higher (nearing or exceeding $80–83 per barrel in recent sessions). India, as a major oil importer (relying on 80–85% imports), faces immediate risks: higher import bills, inflationary pressures, rupee depreciation, and potential delays in RBI rate cuts. Foreign institutional investors (FIIs) have been net sellers, exacerbating the downturn with outflows amid global risk-off sentiment. Domestic institutional investors (DIIs) provided some buying support, but overall market breadth remained weak, with far more decliners than advancers.Analysts noted that the conflict's impact on oil could widen India's current account deficit (CAD) and fuel inflation, while prolonged uncertainty might delay economic recovery. Support levels to watch include 24,300–24,400 on the Nifty (potential further downside if breached) and corresponding levels on the Sensex around 78,500–79,000. The session's volatility underscored how geopolitical shocks in energy-rich regions can swiftly transmit to emerging markets like India. Investors remained cautious, with focus shifting to any de-escalation signals from West Asia or fresh cues from global central banks. As trading continued into the afternoon, the benchmarks were at day's lows, highlighting the fragile sentiment prevailing on March 6, 2026. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world. Latest News Samannay Biswas author Working as Copy Editor at the Business Desk of Times Now Digital. Dedicated towards crafting interesting financial stories. Previously covered financi ... View More News Business Markets End of Article