Sensex slides after Trump rejects Iran peace proposal, a day after Modi’s WFH appeal

India’s benchmark stock indices opened sharply lower on Monday as escalating tensions in the US-Iran conflict rattled global markets, sending crude oil prices soaring and intensifying concerns over inflationary pressures and economic fallout.

The BSE Sensex plunged 845.68 points to 76,482.51 in early trade, while the Nifty 50 dropped 237.90 points to 23,936.85.

The sell-off followed reports that US President Donald Trump had rejected Iran’s latest peace proposal, fuelling fears that the conflict in West Asia could drag on and further disrupt global energy supplies.

Crude surge rattles markets

Global benchmark Brent crude jumped 4.1 percent to around $105.5 per barrel amid concerns over potential supply disruptions through the Strait of Hormuz, a crucial corridor for global oil shipments.

The spike in oil prices weighed heavily on Indian markets, given India’s status as the world’s third-largest crude importer.

Analysts warned that sustained elevated crude prices could widen India’s import bill, stoke inflation and dent corporate profitability.

Rupee slides sharply

The market turmoil also hit the rupee, which fell 139 paise to 94.90 against the US dollar in early trade.

Forex dealers attributed the sharp depreciation to higher oil prices, a strengthening dollar and continued foreign institutional investor outflows.

According to exchange data, foreign investors sold equities worth ₹4,110.60 crore on Friday.

India’s forex reserves also declined by $7.79 billion to $690.69 billion for the week ended May 1, according to Reserve Bank of India data.

Sector-wide losses

All 16 major sectoral indices opened in the red, while broader mid-cap and small-cap indices fell 0.5 percent each.

Shares of state-run oil retailers including Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation slipped about 1 percent each amid concerns over rising under-recoveries.

Travel and aviation stocks also came under pressure after Prime Minister Narendra Modi urged citizens to conserve fuel and reduce discretionary spending to help cushion the economy against the global oil shock.

InterGlobe Aviation fell 3.2 percent, while jewellery firms including Titan Company, Senco Gold and Kalyan Jewellers dropped between 3 and 4.5 percent.

The market decline reflects growing investor unease over the broader economic impact of prolonged geopolitical instability and rising energy costs.