Indian Stocks Slide Amid Iran War Tensions and Trump Deadline
Indian stock markets declined on Tuesday as investor sentiment weakened over escalating tensions in the Middle East and a looming deadline set by U.S. President Donald Trump for a deal involving Iran.
The Nifty 50 fell 0.65% to 22,818.80, while the BSE Sensex dropped 0.64% to 73,639.40 as of 9:50 a.m. IST.
Fourteen of the 16 major sectoral indices recorded losses, with broader markets also under pressure. Small-cap stocks slipped 0.5%, while mid-cap shares declined by about 1%.
Market concerns grew after President Trump warned that the United States could target Iran’s power plants and civilian infrastructure unless Tehran agrees to a deal by the Tuesday deadline. The proposal centres on reopening the Strait of Hormuz, a critical global oil shipping route. Iranian officials, however, have said they want a permanent end to the conflict rather than a temporary ceasefire.
Meanwhile, global oil benchmark Brent crude hovered around $112 per barrel. Rising oil prices typically increase India’s import costs and can negatively impact economic growth and corporate profitability.
Since the Iran conflict began on February 28, both the Nifty and Sensex have dropped about 9.5%.
Sonal Badhan, an economist at Bank of Baroda, said market sentiment remains highly volatile due to developments in the conflict, which have also contributed to foreign capital outflows and pressure on the Indian rupee.
