Sensex tanks 880 points, Nifty below 23,500 as U.S.–Iran tensions rattle sentiment, rupee hits record low

Domestic equity benchmarks opened sharply lower on Friday and extended losses in early trade amid weak global cues and mounting concerns over a prolonged conflict between the United States and Iran. 

At around 10.07 am, the BSE Sensex declined 890.83 points or 1.17% to 75,143.59 while the broader Nifty 50 fell 298.85 points or 1.26% to 23,340.30. The Nifty 50 slipped below the 23,500-mark for the first time since April 2025. 

Investor sentiment weakened further after Mojtaba Khamenei, the Supreme Leader of Iran, stated that the Strait of Hormuz must remain shut to intensify pressure on enemy forces in his first public statement following the escalation in tensions. 

Within the Nifty 50 pack, shares of UltraTech Cement, Larsen & Toubro, InterGlobe Aviation and HDFC Bank were among the top losers. On the other hand, HUL, Trent, Bharti Airtel, and Reliance were the only gainers. 

Broader markets also declined in line with the benchmarks, with the Nifty MidCap 100 and Nifty SmallCap 100 indices trading 0.69% and 1.09% lower, respectively. 

Among sectoral indices, the Nifty Metal index emerged as the worst performer, declining 1.54%. The Nifty Media and Nifty IT indices also traded in the red. 

Asian markets under pressure 

Most markets across the Asia-Pacific region traded lower on Friday, tracking overnight losses on Wall Street and rising concerns over the potential impact of the Iran conflict on the global economic outlook.

 Japan’s Nikkei 225 slipped 1.1% to 53,867.74, with technology stocks leading the decline. Shares of SoftBank Group fell 4.5%. South Korea’s Kospi dropped 1.3% to 5,511.83. 

In other markets, Hong Kong’s Hang Seng Index declined 0.1% to 25,680.65 while China’s Shanghai Composite edged up 0.1% to 4,131.44. Australia’s S&P/ASX 200 gained 0.1%to 8,639.60 while Taiwan’s TAIEX fell 0.7%. 

Meanwhile, U.S. futures were trading about 0.4% higher in early Asian trade. 

Oil climbs above $100 

Crude oil prices remained elevated amid fears of supply disruptions from the Middle East. Brent Crude traded above $100 per barrel despite trimming earlier gains after the U.S. authorised the temporary purchase of Russian oil stranded at sea. 

The May futures contract was trading 0.08% higher at $100.54 per barrel on the Intercontinental Exchange after earlier rising 0.51% to $101.78. 

The Indian Rupee weakened further in early trade, slipping 12 paise to a record low of 92.37 against the US Dollar on Friday as surging crude prices and risk-off sentiment weighed on the currency. 

At the interbank foreign exchange market, the rupee opened at 92.33 and fell to an intraday low of 92.37. The local currency had closed 24 paise lower at 92.25 on Thursday after touching a fresh intraday low of 92.36. 

Forex traders attributed the decline to a stronger dollar, persistent foreign institutional investor (FII) outflows and weak sentiment in domestic equity markets.