The relief seen on Tuesday following President Trump’s decision to delay strikes on Iran’s power grid proved short-lived. On Friday, the Indian equity markets witnessed a sharp sell-off, with the Sensex plunging 1,009 points to hit a low of 74,624.78. The Nifty 50 also dropped over 1%, sliding to 23,000.85, wiping out approximately ₹6 lakh crore of investor wealth.

Market analysts have identified five primary catalysts for this downturn:

• Middle East Conflict: Ongoing distrust between the US and Iran continues to fuel uncertainty despite a temporary halt in strikes.
• Weak Global Cues: Major Asian indices like Nikkei and Kospi fell up to 2%, dragging domestic sentiment down.
• Rupee’s Record Low: The Indian Rupee hit an all-time low of 94.1575 against the US Dollar.
• Soaring Oil Prices: Brent crude has surged to $108 per barrel due to supply chain disruptions.
• FPI Outflow: Foreign Portfolio Investors continued their exit, withdrawing ₹1,23,688 crore from the market.