Why stock markets are falling today: Sensex drops over 500 points as oil surge, US-Iran tensions spook investors

Stock Market Crash: Indian stock markets slipped into the red on Thursday, April 9, as renewed tensions between the US and Iran weighed heavily on investor sentiment, triggering a broad-based sell-off.

The BSE Sensex fell as much as 938.55 points during intraday trade to hit 76,624.35, while the NSE Nifty50 dropped 238 points to 23,759.45.

At around mid-morning, the Nifty50 was trading 0.40 per cent or 95.40 points lower at 23,897, while the Sensex was down 510.55 points or 0.66 per cent at 77,052.34.

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Oil rally, ceasefire tensions trigger fall

Markets came under pressure as oil prices resumed their upward march after Iran accused the US of violating the ceasefire agreement.

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf said the country’s distrust toward the US stems from repeated violations of agreements. He pointed to Israel’s continued attacks on Lebanon and drone activity in Iranian airspace as key concerns.

Geopolitical risks back in focus

Adding to the tension, Donald Trump said US military forces would remain deployed around Iran until a “real agreement” is fully implemented, warning of a strong response in case of any breach.

Meanwhile, Iran has reportedly shut the Strait of Hormuz again, a key global oil transit route that handles nearly 20 per cent of worldwide crude supplies.

Oil prices surge again

Crude oil prices jumped sharply amid the uncertainty. Brent crude’s April contract rose around 2.9 per cent to $97.50 per barrel, while WTI crude also saw strong gains.

Higher oil prices are a major concern for India, which relies on imports for nearly 80–85 per cent of its crude needs.

Sectoral pressure, IT leads losses

On the sectoral front, IT stocks led the decline, with the Nifty IT index falling the most. Private banks, auto, FMCG, and realty stocks also traded lower.

On the other hand, metal and media stocks showed some resilience and outperformed the broader market.

Among index heavyweights, stocks like Infosys, Mahindra & Mahindra, Jio Financial Services and Eternal were among the top losers on the Nifty 50.

Broader markets hold steady

Despite the weakness in frontline indices, broader markets showed resilience. The Nifty MidCap index was up 0.06 per cent, while the Nifty SmallCap index gained 0.36 per cent.

FII selling adds pressure

Foreign institutional investors continue to remain net sellers, adding to the pressure. FIIs sold equities worth Rs 2,812 crore in the previous session, and have pulled out nearly Rs 37,933 crore so far in April.

Inflation, growth concerns resurface

The Reserve Bank of India has already flagged rising global uncertainties and elevated crude prices as key risks.

Higher oil prices could push inflation higher and impact growth, especially if crude sustains above the $100 per barrel mark.

Profit booking after rally

Part of the decline also comes from profit booking after Wednesday’s sharp rally, when benchmark indices surged nearly 4 per cent following optimism around the ceasefire and RBI policy stance.

Stocks in focus: Q4 results today

Meanwhile, earnings season is picking up pace. Shares of Tata Consultancy Services, Anand Rathi Wealth, GM Breweries, and Rajputana Stainless will remain in focus ahead of their quarterly results later today.

The takeaway

A combination of rising geopolitical tensions, higher crude prices, continued FII selling, and profit booking has pushed markets lower.

Going ahead, developments around the US-Iran situation and oil price movement will be key triggers for market direction in the near term.