Stock Market in Turmoil: The Indian stock market reeled under intense pressure on Friday as geopolitical tensions between Iran and Israel spooked investor sentiment, triggering a sharp spike in volatility and a broad-based sell-off across sectors. The fear gauge, India VIX, skyrocketed by nearly 14% to 15.97, marking its steepest one-day rise since May 8, signaling heightened uncertainty in the market. This dramatic surge comes after weeks of relative calm and is largely attributed to fears of prolonged instability in the Middle East following Israel’s ongoing military operations and the potential threat of retaliation from Iran.
Key Indices Tumble Amid Geopolitical Tensions
By late morning, the BSE Sensex had plunged by over 800 points to 80,787, while the NSE Nifty 50 sank below the crucial 24,500 mark, testing its 20-DMA and super trend line support. The broader market, including the Nifty MidCap and SmallCap indices, also bore the brunt, down nearly 0.5% after initially falling over 1%.
Oil Prices Surge; OMCs, Aviation, Paint Stocks Hit
The market’s reaction was compounded by a sharp 12-13% rise in crude oil prices, with Brent crude touching $78 a barrel. Analysts warned of further escalation if Iran moves to block the Strait of Hormuz, a crucial oil route. This had a ripple effect on sectors heavily reliant on oil and its derivatives.
- OMCs, paint, tyre, and aviation stocks saw significant declines.
- IndiGo fell over 5.6%, its worst session since April, while SpiceJet dropped similarly following the twin impact of oil surge and a tragic Air India crash.
- Shares of Asian Paints and MRF also traded in the red due to margin concerns.
Auto Sector Feels the Heat After Trump’s Tariff Threat
The Nifty Auto index slipped over 2% after former U.S. President Donald Trump hinted at imposing higher auto tariffs, triggering a sharp sell-off in automobile stocks. Fourteen of the 15 constituents of the index were in the red, indicating global trade tensions are adding to the domestic market’s woes.
Defence Stocks Shine Bright Amid Chaos
Interestingly, amid the bloodbath, defence sector stocks bucked the trend, emerging as rare gainers. Companies like HAL, BEL, and BDL saw gains of up to 3%, fueled by India’s aggressive defence procurement plans and safe-haven buying amid the geopolitical scare.
According to Defence Secretary Rajesh Kumar Singh, India is expected to sign contracts worth ₹2 trillion in FY26, echoing FY25’s record figures. This bolstered investor confidence in the sector.
Advait Energy Transitions Soars 86% in 5 Weeks
On the smallcap front, Advait Energy Transitions continued its meteoric rise, hitting a 9-month high of ₹2,146 on the BSE. The stock is up 29% in just two days, and a staggering 86% over the past five weeks, showcasing strong investor appetite even in turbulent times. Its sharp rally came amid robust volumes and speculation of institutional interest.
DCM Shriram Up on Acquisition News
Shares of DCM Shriram briefly gained over 3% after the company announced the acquisition of Hindusthan Specialty Chemicals for ₹375 crore. However, the stock later traded flat as broader market pressures took over.
Jubilant Pharmova and Sona BLW See Mixed Fortunes
While Jubilant Pharmova defied the weak market, jumping nearly 4% intraday, Sona BLW Precision Forgings fell in mourning as its Chairman Sunjay Kapur passed away, casting a cloud over the company’s immediate outlook.
Currency Markets React: Rupee Falls Sharply
Adding to the nervousness, the Indian rupee opened 55 paise lower at ₹86.15/$, its steepest drop in recent weeks, as investors fled to safe-haven assets like the dollar and gold.
Uncertainty Looms
The sudden spike in India VIX suggests that market volatility is far from over. Until geopolitical tensions ease and oil prices stabilize, experts caution that Indian equities may remain under pressure. For now, defensive sectors like IT, Pharma, and Defence may offer some shelter from the storm.
