The stock market plummets 1.25% due to the attacks between the United States and Iran & more related news here

The benchmark NSE Nifty 50 index fell 1.25% to 24,865.70 points, in response to the attacks between the United States and Iran over the weekend. The BSE Sensex 30 fell by the same amount to 80,238.85.

The benchmark NSE Nifty 50 index opened down 2% at 24,659.25 points from the previous day’s close of 25,178.6 after reports emerged that Iran closed the Strait of Hormuz, disrupting about a fifth of global oil supply. The indices then gradually advanced until the close of the day.

Barring Nifty Metal and Nifty Pharma, all 21 sectoral indices on the NSE declined.

Of the 3,296 stocks listed on the index, only 651 advanced and some 2,578 fell. Bharat Electrical Ltd. Hindalco. ITC, Sunpharma and ONGC gained, while Indigo, L&T, Adani Ports, Maruti Suzuki and Asian Paints fell.

Nifty faced its most volatile day in eight months with the India VIX index (which measures volatility) rising 23.54% to 16.9 points. This is also the fastest one-day increase in volatility since April 7, 2025, when the index rose more than 65% in one session.

Analysts say the war and a subsequent event will create short-term volatility. As long as Nifty 50 and Sensex 30 remain above 24,750 and 80,000 points, the market may undergo a reversal, Shrikant Chouhan, head of equity research at Kotak Securities, said in a note.

The stock market reaction to wars in West Asia is usually transmitted through oil price shocks, Axis Mutual Fund chief investment officer Ashis Gupta said in his note. “Any attempt by Iran to disrupt or close the Strait of Hormuz (SoH) represents a key upside risk to crude oil, refined products and LNG prices,” he said.

Reports of a blockage in the Strait of Hormuz led Brent crude futures to rise to a near one-year high of $79.15. “A sustained price increase is likely to materialize only if oil flows through the Strait of Hormuz remain disrupted for an extended period, potentially 4 to 5 weeks according to President Trump’s campaign,” Kaynat Chainwala, AVP Commodity Research, said in a note.

“While OPEC+ has announced plans to increase production by 206,000 barrels per day from April to cushion potential disruptions, additional production cannot fully offset the impact of a shutdown or severe restriction on a choke point that handles a fifth of global energy trade. If traffic in the strait improves, price increases may prove temporary; if not, the supply shock could be significantly more pronounced,” Ms Chainwala said.

Gold also recovered after a brief period of stability by 3% to $5,409.7 an ounce on the global commodities exchange COMEX. “Safe haven demand had already been rising on Friday (February 26, 2026) after China and the United States issued evacuation notices urging their citizens to leave Iran and Israel, reflecting growing concerns about the expanding conflict… A decisive break to new highs would likely require a major escalation—for example, a confirmed large-scale Iranian attack on a U.S. aircraft carrier such as the USS Abraham Lincoln—which could provoke substantial U.S. retaliation and ignite another aggressive wave of safe haven. shopping,” Ms. Chainwala said in the note.

Analysts at brokerage houses and asset management companies (AMCs) maintain that the market volatility caused by the external war will have no effect on the long-term investment trend.

“While periods of conflict can generate short-term volatility, experience suggests that making portfolio decisions solely in response to them has often proven to be less effective than maintaining a long-term investment approach. Investors who abandoned stocks during previous conflict-driven sell-offs often failed to achieve the rallies that followed, sometimes in a relatively short time. The bottom line from these episodes is not to ignore risk, but to approach it with discipline and perspective,” Mr. Gupta said, advising investors to avoid any panic selling.