Benchmark Nifty and Sensex dipped over 2% to 23,882.05 and 76,503.60 points as investors sold after renewed Iran-U.S. clashes sent global oil prices soaring on July 8.

The stock indices opened weak, about 0.6% down from the previous close and declined slowly until 2:00 p.m., after which they tumbled to the day’s close. 

Brent crude futures spiked up by 7.4% in two sessions trading at more than $77.3 a barrel on Wednesday, as compared with $72 a barrel on Monday. This is however nowhere close to the levels between March 2026 and April 2026, when the war escalated almost everyday. 

“I think it’s over. I don’t want to deal with them any more, they’re scum,” Trump said when asked if the ceasefire with Iran was over, at the NATO summit at Turkey on Wednesday. This news sent markets crashing.  

“Elevated crude oil prices bear negatively on India, the world’s third-largest importer and consumer of oil, as they inflate the import bill, stoke inflationary pressures, and weigh on the trajectory of economic growth,” said Nandish Shah - Deputy Vice President, HDFC Securities.

The Indian rupee too depreciated 52 paise to ₹95.5 a dollar as against ₹94.48 the previous day on potential increase in fuel prices. 

“Geopolitical concerns have lifted the risk premium amid heightened volatility. In the near term, USD-INR is expected to face resistance at 95.80 and support at 94.95, with the bias now favouring dollar bulls,” said Dilip Parmar, research analyst, HDFC Securities