Benchmark indices Sensex and Nifty crashed on July 8, 2026, after following US President Donald Trump's remarks that the interim agreement with Iran was "over". The 30-share BSE Sensex fell 1,677.12 points, or 2.15 per cent, to settle at 76,503.60. During the day, the benchmark hit a high of 77,851.18 and a low of 76,259.03, gyrating 1,592.15 points. The 50-share NSE Nifty was down 516.65 points, or 2.12 per cent, and ended the session at 23,882.05. Similarly, the broader market ended in the red. While the BSE MidCap Select Index shed 389.93 points, or 2.14 per cent, the BSE SmallCap Select Index dropped 139.22 points, or 1.61 per cent.
India VIX surges 28%
The heightened uncertainty was reflected in the Indian VIX, which surged more than 28 per cent, signalling a sharp increase in market volatility and investor risk aversion.
The sell-off wiped out nearly Rs 1.05 lakh crore in investor wealth. The total market capitalisation of BSE-listed companies fell to Rs 471.62 lakh crore, compared with Rs 479.67 lakh crore on July 7.
Among sectoral indices, Nifty FMCG and Nifty Auto fell the most, with stocks like Dabur falling 3.79 per cent.
"Wednesday was not a correction. It was a reversal. Everything markets celebrated over the past two months, the cheaper crude, easing geopolitical risk, rate cut hopes, all unravelled in a single session. Trump declared the US-Iran ceasefire over at the NATO summit in Ankara. The US then struck over 80 Iranian targets. Tehran revoked passage rights in the Strait of Hormuz and threatened US military bases across the Gulf. Washington pulled Iran's oil export licence," said Sarvam Goel, Founder, Pocketful.
Meanwhile, brent crude, the global oil benchmark, jumped 6.18 per cent to USD 78.74 per barrel.
Rupee tanks 59 paise
The rupee tanked 59 paise to settle at 95.55 (provisional) against the US dollar on Wednesday as the US launched fresh strikes on Iran after Tehran struck three ships in the Strait of Hormuz, pushing up crude oil prices and strengthening the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.13, up 0.11 per cent.
ALSO READ | Sensex falls 364 points, Nifty below 24,300 as crude oil prices jump after fresh US strikes on Iran
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
