The market capitalisation of all listed companies on the BSE declined by Rs 9.71 lakh crore to Rs 465.15 lakh crore.

Investor concerns grew after Iran launched ballistic missiles at Israel earlier in the week, raising fears that an escalation could disrupt oil supplies from the region.

Oil prices ticked higher on the day. A rise in oil prices is a negative for importers of the commodity.

Among Sensex stocks, Reliance Industries, HDFC Bank, L&T, Axis Bank, and ICICI Bank collectively dragged the index down by 1,015 points, with JSW Steel being the only gainer.

The Nifty Oil & Gas index closed more than 2.7% lower, impacted by concerns over the escalating Middle East conflict.

Hindustan Petroleum, Oil India, and BPCL were the top laggards on the index, declining by 5-7%. Meanwhile, the fear gauge, India VIX, surged 9.86% to reach 13.17.

Here are the key factors behind today’s meltdown

1) Iran-Israel Clash

Indian stocks declined on Thursday amid rising concerns over the escalating hostilities between Iran and Israel. Reports indicate that the Israeli military has confirmed the deaths of eight soldiers, including a team commander, during ground operations in southern Lebanon.

This escalation follows Iranian missile attacks targeting Tel Aviv, with Israel’s military chief warning of an imminent response.

“The domestic market took a sharp downturn following Iran’s launch of ballistic missiles at Israel, sparking fears of retaliation and escalation in war. This could potentially drive up oil prices and lead to inflationary pressures,” said Vinod Nair of Geojit Financial Services.

2) Rise in crude oil prices

Oil prices increased amid concerns that escalating tensions in the Middle East could threaten supplies from major producers. Brent crude briefly surpassed $75 per barrel, whi ..

3) Sebi tightens F&O measures

The recent decision by market regulator Sebi to tighten rules in the futures and options (F&O) segment has also contributed to the decline in equity markets today. Analysts stated that these new measures, which include limiting weekly expiries to one per exchange and increasing contract sizes, may dampen retail sentiment and reduce trading volumes.

This uncertainty around trading dynamics has likely fueled investor concerns, adding to the ..