The stock market crash is primarily due to the escalating Israel–Iran conflict. This has increased geopolitical uncertainty, disrupted oil shipments via the Strait of Hormuz, and caused crude prices to surge about 10%, triggering risk-off sentiment.

Medium confidenceStructural

CURRENT STATE

This tension has caused the Sensex and Nifty 50 to decline nearly 4% in 2026. Markets anticipate a gap-down opening and higher volatility. The rupee has weakened to 91.08, and foreign institutional investors continue net selling.

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