Israel-Iran airstrikes spark 1.6% plunge in India’s Nifty 50 and Sensex markets

India’s benchmark equity indices, the Nifty 50 and Sensex, plunged approximately 1.6% Friday following Israel’s large-scale airstrikes on Iran’s nuclear and ballistic missile facilities.

The Nifty 50 dropped 415.20 points (-1.67%) to 24,473.00, while the Sensex fell 1,262.44 points (-1.55%) to 80,429.54 in early trade, reflecting investor concerns over escalating Middle East tensions.

Prime Minister Benjamin Netanyahu described the strikes as the opening phase of "Operation Rising Lion," a prolonged campaign to neutralize what Israel calls an existential threat from Iran’s nuclear program. Netanyahu said, “This operation will continue for as many days as it takes to remove this threat.”

The strikes targeted Iran’s main enrichment site at Natanz, ballistic missile factories, and senior military commanders, including the reported killing of IRGC commander Hossein Salami.

The conflict has triggered a sharp surge in crude oil prices, with Brent crude spiking 12.82% to $78.25 a barrel and WTI crude rising 13.48% to $77.21, amid fears of supply disruptions through the Strait of Hormuz, a critical oil shipping route.

Market analysts warn that the situation remains volatile, with potential Iranian retaliation expected. Israel’s Defense Minister Israel Katz declared a state of emergency, anticipating missile and drone attacks.

Global markets also reacted negatively, with U.S. futures and Asian indices falling sharply. The selloff in India mirrored weak global cues and concerns over a broader regional conflict impacting energy supplies and economic stability.

Banking expert Ajay Bagga noted, “The situation remains volatile with Israel declaring a national emergency in anticipation of Iranian retaliation.”

While geopolitical shocks often cause short-term market falls, analysts caution that recoveries could be swift if the crisis does not escalate further.

The unfolding conflict underscores the fragility of global markets amid geopolitical risks and the critical role of Middle East stability in energy security.

India’s Nifty 50 and Sensex markets plunged about 1.6% Friday following Israel’s airstrikes on Iran targeting nuclear and missile sites. The strikes sparked fears of regional conflict and oil supply disruptions, pushing crude prices above $78 a barrel and triggering global market selloffs amid heightened geopolitical tensions.