Sensex Tanks 2,500 Points, Nifty Down 3% As Widening Iran War Triggers 30% Rally In Oil Prices

Sensex, Nifty Today: Domestic equity benchmark indices extended rout on Monday, March 9 as the widening US-Israeli war with Iran sent oil prices dramatically higher to the levels seen four years ago.

The BSE Sensex opened with a deep gap-down of 2,494.35 points, or 31.16 per cent, at 76,424.55. Similarly, the NSE Nifty 50 started with a gap-down of 752.65 points, 3 per cent, at 23,697.80.

As of 10:16 AM, Sensex was down 2,196.38 points, or 2.78 per cent, to quote at 76.722.52, and the Nifty 50 was trading lower by 673.30 points, or 2.75 per cent at 23,777.15.

The sell-off was broad-based, with all sectoral indices trading deep in the red. Nifty PSU Bank was down around 6 per cent, while Nifty Auto quoted nearly 5 per cent lower. Nifty Bank, which tracks the 12 most valuable and liquid banking stocks, plunged more than 4 per cent.

Financial services, private bank, and metal indices were down by over 3 per cent. Even typically defensive sectors such as FMCG and Pharma declined around 2 per cent. Nifty IT, however, limited losses and was down less than 1 per cent.

Dragging the Nifty 50 lower were aviation major IndiGo and the country’s largest public sector lender State Bank of India. Both the top losers fell over 7 per cent. Auto stocks Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Eicher Motors, and Bajaj Auto fell between 4 and 6 per cent.  Asian Paints, steel majors Tata Steel and JSW Steel, and financial services firms Shriram Finance and Jio Financial Services, were also down more than 4 per cent.

What Should Investors Do

Since the recent full-fledged Iran war broke out, benchmark indices have declined more than 5 per cent. Amid a volatile condition, investors are worried how to re-structure their portfolios.

"Breathe first, then act," said, Nikunj Saraf, CEO at Choice Wealth. The immediate action one can take is to check whether price falls have hit your high-conviction holdings or only short-term momentum names, he said, adding, "then trim positions that no longer fit your thesis and use the cash to top up quality stocks at lower prices."

Saraf advised investors to rebalance portfolios to their target allocations and avoid letting panic-driven market movements skew asset allocation. He suggested maintaining some short-term cash to take advantage of emerging opportunities, and add defensive assets such as high-quality bonds or short-duration debt. A small allocation to gold or other hedges could also help if inflation and geopolitical risks rise, he said, adding that investors should continue investing in a disciplined manner through systematic investment plans (SIPs) and top-ups rather than making emotional lump-sum bets.

Are Indian Equities Looking Attractive After Today's Sell-off

While Indian benchmark indices are down around 8–10 per cent on a year-to-date basis, several Asian markets have performed significantly better. Over the same period, South Korea’s KOSPI has rallied about 22 per cent. Japan’s Nikkei 225 has remained largely resilient, rising around 1.7 per cent. Meanwhile, China’s CSI 300 has declined more than 2 per cent, while Hong Kong’s Hang Seng Index is down about 3.5 per cent.

Saraf said, Indian equities appear more attractive than they were a month ago as valuations have moderated and the premium over peer markets has narrowed. However, he cautioned that Indian stocks still trade at a premium to many Asian markets. Investors should therefore focus on earnings quality and currency risks before making any allocation decisions, he added.