Indian Equities Hit Six-Month Lows Amid US-Iran Conflict
Indian stock markets tumbled toward six-month lows as escalating US-Iran tensions drove Brent crude prices above $107 per barrel and triggered massive foreign fund outflows.
Indian equity benchmarks, the BSE Sensex and NSE Nifty, traded near six-month lows on September 29, 2026, following a massive selloff. The Sensex plunged over 1,100 points on Monday, hitting its lowest closing level since March 30, 2026, before continuing to tumble in early Tuesday trade, dropping an additional 503 points to 72,260.09.
Foreign Institutional Investors drove the downturn, offloading equities worth more than ₹5,353 crore on Monday. This selling streak coincided with soaring Brent crude oil prices, which rose to approximately $107 per barrel. Investors are reacting to geopolitical uncertainty and potential supply disruptions through the Strait of Hormuz stemming from an escalating conflict between the United States and Iran. As the world's third-largest crude importer, India faces heightened risks of inflation and squeezed corporate margins.
Market pressure was further compounded by high US 10-year Treasury yields of 5.23 per cent and weak performance in the S&P 500 and Nasdaq. While heavyweight financials and Tata Group companies declined, pharmaceutical stocks and infrastructure firm NCC Ltd. saw gains. Separately, the Securities and Exchange Board of India disposed of proceedings against Gautam Adani and four group companies regarding public-float violations, though it penalized two individuals for wrongful disclosures.
