Mumbai, March 9: The Indian stock market witnessed a sharp sell-off on Monday, March 9, 2026, as rising geopolitical tensions in the Middle East triggered panic among global investors. The BSE Sensex plunged more than 2,200 points during early trade, while the NSE Nifty slipped below the 24,000 mark. The steep fall erased nearly INR 12 lakh crore in investor wealth within hours, driven largely by soaring crude oil prices and continued selling by foreign institutional investors (FIIs).

The biggest trigger behind the market decline was a historic surge in global oil prices. Crude oil futures on the MCX crossed the INR 10,000 per barrel mark for the first time, touching a record INR 10,119 per barrel. Meanwhile, Brent crude jumped more than 26 percent to trade near USD 117 per barrel, intensifying fears about rising energy costs and inflation. The spike comes amid escalating military tensions involving the United States, Israel, and Iran, raising concerns about disruptions to global oil supply routes. Stock Market Today: Share Markets Bleed As Crude Oil Prices Spike, Nifty Drops 582 Points, Sensex Falls 1862 Points at Open.

Investor sentiment was further weakened by sustained outflows from foreign institutional investors. After selling equities worth more than INR 21,831 crore in the previous week, FIIs continued to offload Indian stocks in Monday’s session. At the same time, the India VIX, often referred to as the market’s “fear gauge,” surged nearly 22 percent to 24.25, reflecting rising volatility and uncertainty among traders. Jupiter Wagons Share Price Today, March 9: Stock Falls Over 3% in Early Trade, Check Latest Price on NSE.

The geopolitical crisis also pressured the Indian currency. The Indian Rupee weakened to 92.49 against the US Dollar, increasing concerns about higher import costs, particularly for crude oil. A weaker rupee typically makes oil imports more expensive, which can further strain India’s economy and corporate margins.

Global markets also mirrored the risk-off sentiment. In Asia, Japan’s Nikkei index dropped nearly 7 percent, while South Korea’s Kospi fell over 7.3 percent, following losses in US markets and continued weakness across European indices.

India, one of the world’s largest crude oil importers, is particularly vulnerable to sharp rises in energy prices. Analysts warn that sustained high oil prices could increase inflation and widen the country’s current account deficit. Until there is clarity or de-escalation in the West Asian conflict, market experts believe Indian equities could remain volatile as investors move towards safer assets.

(The above story first appeared on LatestLY on Mar 09, 2026 12:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).