Nifty, Sensex Tumble 2% After Breakdown Of US-Iran Peace Talks

Indian stock markets fell on April 13 as peace talks between US and Iran over the weekend soured. All major indices opened in red as investors turned risk averse following crash in global markets after US President Donald Trump announced a blockade of the Strait of Hormuz.

Both the Nifty 50 and the BSE Sensex were around 2 per cent down with Nifty trading at 23,616.60 and the Sensex trading at 76,001.89. The breakdown in peace negotiations in Islamabad over the weekend reignited fears of a prolonged war in West Asia, resulting in broad-based selling across Indian markets.

Trump in a post on Truth Social wrote, “Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump wrote on Truth Social. “The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION.”

Crude oil prices jumped as investors reassessed risks due to the US-Iran war, with Brent crude oil prices rising over 7 per cent to $102.04 per barrel. The rupee also pared some of the gains made in the past two weeks falling to 93.39 against the US dollar.

Losses in stock markets were led by public-sector banks, with the Nifty PSU Bank index trading 2.7 per cent down from previous close. India’s largest lender, State Bank of India (SBI) was among the top losers in Nifty, trading 2.8 per cent down at Rs. 1,036.45 per share. Banking, financials and oil & gas sectors followed losses in PSU banks. Shriram Finance shares traded 2.8 per cent lower at Rs. 998.50 apiece.

(This is a developing story. More updates to follow)