The ongoing US–Iran war continued to weigh on the Indian stock market on Monday, March 9, as investor sentiment further deteriorated amid a relentless surge in crude oil prices. A falling domestic currency and sustained outflows from overseas investors also dragged the key benchmark indices to an 11-month low.
Amid heavy panic selling following escalating tensions between the US and Iran, the Nifty 50 crashed 1.86% to 23,994, while the Sensex fell 1.77% to 77,521. At one point, both indices had declined nearly 3%. Even though they recovered from the day’s low, they are still trading at their lowest levels since May 2025.
The broader markets also faced similar pressure from the Street, with the Nifty Midcap 100 and Nifty Smallcap 100 indices crashing by up to 2.4%.
The situation in the Middle East is worsening with each passing day, and the war has already started showing its impact on the global economy. Crude oil prices have surged nearly 64% since the start of the conflict, while gas prices have also been rising sharply.
The war, which initially began between three nations, has now drawn in several major Middle Eastern countries, leading to widespread chaos in the region, with US-Israel and Iran vowing to continue attacks on each other and resulting in significant loss of lives.
(more to come)