Market fall today: Sensex tanks 1200 pts as US-Iran tensions flare up again

BSE Sensex fell 1,215 pts intraday and Nifty slipped below 23,700 amid US-Iran tensions, oil surge, and FII selling. Here are 6 key reasons that are driving today's stock market decline.

Why are stock markets falling today? 

Indian stock markets were back in the red on Thursday, April 9, as tensions between the US and Iran resurfaced, souring investor sentiment. 

The BSE Sensex declined 1,215 points in the intraday trade to hit a low of 76,347.90 levels. Similarly, the NSE Nifty50 tumbled 315 points to dip to a low of 23,683. 

The Sensex index closed with a cut of 931.25 points, or 1.2 per cent, at 76,631.65. The Nifty index fell 222.25 points, or 0.93 per cent, to settle at 23,775.10. 

  In the broader markets, however, the Nifty MidCap index and the Nifty SmallCap index closed in the positive territory, gaining 0.32 per cent and 0.17 per cent, respectively. 

 

Among sectors, the Nifty Bank index fell 1.5 per cent and the Nifty Financial Services index slipped 1.2 per cent. The Nifty Private Bank, and PSU Bank indices dropped 1.7 per cent and 1.2 per cent, respectively. 

India VIX – the volatility gauge – was up nearly 4 per cent at 20.43 levels.  FOLLOW STOCK MARKET UPDATES TODAY LIVE

Why are Share Markets falling? Key reasons for Sensex, Nifty fall today, April 9, 2026:

1) Donald Trump keeps military stationed near Iran

Market sentiment took a hit on Thursday because tensions in the West Asian region resurfaced a day after the United States (US) and Iran reached a temporary ceasefire in hostilities. 

US President Donald Trump said today the US military forces will “remain deployed in and around Iran” until the country fully complies with the “real agreement”.

  Any breach of the ceasefire agreement, he said, would result in a “military response larger than anything seen before”. 

“All US ships, aircraft, and military personnel will remain in place in, and around, Iran, until such time as the REAL AGREEMENT reached is fully complied with. If for any reason it is not...the ‘shootin’ starts,’ bigger, and better, and stronger than anyone has ever seen before,”  Trump wrote on Truth Social.

2) Iran closes Strait of Hormuz, again

That apart, Iran has reportedly closed the Strait of Hormuz yet again, alleging violation of the two-week ceasefire agreement by the US and Israel. 

According to Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, one of the key violations of the ceasefire agreement includes Israel’s attack on Lebanon. Besides, an entry of a drone into Iranian airspace, and the denial of the Islamic Republic’s right to enrich uranium were the other two violations. 

Following the allegations, Iran’s local media reported that oil tanker traffic through the Strait has been halted. 

Remember, Strait of Hormuz is a critical maritime route through which about 20 per cent of global oil supplies transit.

3) Oil prices rise; Brent tests $97/barrel

Oil prices climbed again on Thursday as investors feared supplies may remain constrained as Iran-US tensions resurfaced. The “fragile” two-week ceasefire between the US and Iran is under scanner as the crucial Strait of Hormuz remains restricted. 

Brent crude futures rose 2.74 per cent to $97.35 a barrel today, while US West Texas Intermediate (WTI) crude gained 3.2 per cent to $97.43 a barrel. 

Both the benchmark prices, however, remain the $100 per barrel mark. 

4) Inflation, growth fears

Higher oil prices negatively affect India’s macro set-up as 80-85 per cent of the country’s crude oil needs are met through imports. 

On Wednesday, the Reserve Bank of India (RBI) acknowledged rising global uncertainties and elevated prices of key energy commodities as upside risks to India's current account deficit.  

The central bank pegged FY27 GDP growth forecast at 6.9 per cent during the April MPC meeting (70 basis points lower than the 7.6-per cent growth expected in FY26), assuming oil at $85 per barrel.  

The RBI also flagged downside risk emanating from a 'further escalation of the conflict, its continuation over a wider geographical spread and uncertainty regarding the damage to the energy infrastructure'. 

“We think that if the energy shock lingers, it could weigh more on growth than on inflation, looking more like the pandemic than the 2022 oil price shock,” analysts at HSBC said. 

The brokerage said if oil averages below $100/bbl, inflation should stay under 6 per cent (assuming normal rains or a moderate El Niño).  

“However, if oil averages above $100/bbl, inflation would likely breach 6 per cent and could prompt rate hikes - though that isn't our base case,” HSBC said.

5) FII selling continues

Despite the US and Iran announcing a ceasefire, and the RBI announcing measures to curb rupee depreciation, foreign institutional investors (FIIs) remain net sellers of Indian equities.  

On Wednesday, FIIs sold equities worth ₹2,812 crore in the cash market, while DIIs purchased equities worth ₹4,168.17 crore. 

Thus far in April 2026, FIIs have sold India stocks worth ₹37,933.35 crore. They sold equities amounting to ₹1.22 trillion in March 2026.

6) Profit booking in Sensex, Nifty

Some part of today’s selling may also be attributed to profit booking by investors after a sharp rally on Wednesday. 

Notably, the benchmark indices settled higher for a fifth consecutive day on Wednesday as the US-Iran ceasefire and the Reserve Bank of India’s decision to maintain status quo in policy rate calmed investors nerves.  

The Nifty50 ended 3.78 per cent or 873.70 points higher at 23,997.35 yesterday, while the Sensex zoomed 3.95 per cent or 2,946.32 points to end at 77,562.90.