Indian benchmarks have been witnessing a continuous fall for the second consecutive week from September 1, 2026, as the ongoing US-Iran clash and the resultant rise in crude oil prices have impacted the performance of Indian markets.
Nifty lost 230 points, or 1%, to fall to 23,255, and BSE Sensex fell 637 points, or 0.87%, to reach 74,265 on September 11, 2026. Selling activity was widespread, with metals emerging as the worst-hit sector.
Out of the top 30 stocks in BSE, only eight shares were on the gainers list, while 22 others were in the losers' list, Bajaj Finance, Mahindra & Mahindra, and Tata Steel falling by more than 2%.
The impact was far-reaching, extending much deeper than just the frontline indexes. The total market capitalization of the BSE tumbled by around Rs 5 lakh crore, dropping from Rs 483 lakh crore to Rs 478 lakh crore in just one day of trading.
Market breadth was definitely on the negative side, with out of 3,365 shares traded in the session, 2,376 shares falling as opposed to only 809 shares that gained, with 117 shares marking their new 52-week lows, while 68 stocks marked new highs in their 52-week range.
Laggards individually faced losses, with Hindustan Copper and Hindustan Zinc falling by about 4%, Godrej Properties and Cochin Shipyard falling by 6%, and Muthoot Finance falling by nearly 4%.
The prime reason is the crude oil. The Brent crude has risen to about $108 per barrel because of the ongoing war between the US and Iran, a level that raises concerns about inflation in an economy like India's, where the vast majority of crude oil is imported.
Just days before, on September 7, the price of Brent was hovering at about $97 per barrel as the Sensex stood at 76,300 and Nifty at 23,850.
Unexpectedly high inflation numbers in the US have further compounded the situation, raising fresh apprehensions regarding further interest rate hikes by the Federal Reserve Board and negatively impacting investor sentiment in the emerging markets, India not an exception.
The foreign institutional investors have continued to sell during the period, reducing the holdings of Indian equities to the tune of Rs 438 crore on September 10 itself, even while domestic investors continued to buy shares valued at Rs 1,026 crore.
According to Anuj Gupta, a SEBI-registered market expert, volatility is expected to continue until the US elections and midterm elections are over, and the investors are advised to avoid making aggressive investments and instead invest via the SIP route.
He further recommended investing in fundamentally strong companies in the given scenario, with crude oil prices playing the most significant role in both inflation and stock markets movement.
This downturn comes following a series of tumultuous weeks in Indian stock markets. Although equity markets saw a reprieve in August as a result of a volatile period that emerged as a consequence of the US-Iranian war situation.
September brought the escalation of this conflict and renewed worries. Sessions are marked by sudden drops and temporary rallies—the SenseX rose by 138 points on September 10—thus pointing out just how vulnerable market dynamics have become to developments in the Middle East.
