The escalating conflict in West Asia is casting a long shadow over the global economy and the Indian financial markets. On Friday, March 13, 2026, the Indian stock market faced a brutal sell-off, with major indices like the BSE Sensex and Nifty 50 plunging to fresh lows. In a surprising turn of events, gold and silver prices—usually considered safe havens during wartime—also witnessed a downward correction, adding to the growing anxiety among retail and institutional investors.

Why are Markets Falling? The BSE Sensex plummeted by over 1,300 points today, settling near the 76,000 mark, while the Nifty 50 dropped nearly 400 points to close below 23,900. The primary trigger remains the intensifying war between Israel and Iran, which has sent crude oil prices soaring and stoked fears of global inflation. Foreign Portfolio Investors (FPIs) are aggressively offloading Indian equities, leading to a wealth erosion of over ₹5 lakh crore in a single session.

Gold and Silver Price Drop: In Kolkata, the price of 24K gold dropped to approximately ₹1,62,210 per 10 grams, while silver fell significantly to trade around the ₹2.80 lakh per kg mark. Analysts point out that despite the war, a strengthening US Dollar and rising US Treasury yields have made gold less attractive for global buyers. Furthermore, massive liquidations in the equity markets have forced investors to book profits in gold to cover their margin calls. While the long-term outlook for precious metals remains bullish due to systemic risks, the short-term volatility is keeping buyers on the sidelines. As the war of words between Tehran and Washington escalates, the financial markets are bracing for a period of extreme uncertainty.