Sensex crashes over 1,700 points in early trade; Nifty below 24,400 level; VIX zooms 18.43%

The domestic equity indices traded with major losses in early trade, mirroring a global sell-off after escalating U.S.'Israeli air strikes on Iran intensified geopolitical tensions in West Asia. The spike in crude oil prices amid fears of potential supply disruptions through the Strait of Hormuz dampened investor sentiment, with rising inflationary risks and concerns over delayed rate cuts triggering broad-based selling across sectors.

The Nifty slipped below the 24,400 level. Except for the IT index, all other sectoral indices on the NSE traded in the red.

At 09:30 IST, the barometer index, the S&P BSE Sensex, plunged 1,710.37 points or 2.13% to 78,571.74. The Nifty 50 index slumped 476.90 points or 1.92% to 24,388.80.

The broader market, the BSE 150 MidCap Index declined 2.08% and the BSE 250 SmallCap Index fell 2.23%.

The market breadth was weak. On the BSE, 610 shares rose and 2,817 shares fell. A total of 155 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,295.64 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 8,593.87 crore in the Indian equity market on 02 March 2026, provisional data showed.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 18.43% to 20.29.

Stocks in Spotlight:

Newgen Software Technologies fell 0.85%. The company announced that its material subsidiary, Newgen Software Inc, has entered into a Master Service Agreement with a Caribbean-based insurance company for a total contract value of $1,495,000 (approximately Rs 13.77 crore).

Adani Ports & Special Economic Zone (APSEZ) fell 3.43%. The company handled 42.5 MT in February 2026, registering the growth of 16% YoY. Logistics rail volume stood at 52,101 TEUs in February 2026, up 3% YoY.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.70% to 6.727 compared with the previous session close of 6.680.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 92.1700 compared with its close of 91.4925 during the previous trading session.

MCX Gold futures for 2 April 2026 settlement jumped 1.48% to Rs 163,442.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.04% to 99.10.

The United States 10-year bond yield added 0.22% to 4.065.

In the commodities market, Brent crude for May 2026 settlement rose 72 cents or 0.88% to $82.12 a barrel.

Global Markets:

Asian market traded lower on Tuesday as South Korea led the losses on Wednesday as the war in the Middle East continued unabated.

South Korea's Kospi plunged 8% Wednesday, on track for its worst day since August 2024, and extending a steep selloff from the previous session. The Korea Exchange temporarily halted trading for the Kospi index on Wednesday. A circuit breaker was also activated on the Kosdaq, which also fell by over 8%.

A senior commander from Iran's Revolutionary Guard said on Monday that the critical artery had been shut and warned that any vessel attempting to transit the waterway would be targeted, according to Iranian media.

U.S. President Donald Trump reportedly said Tuesday afternoon that the U.S. Navy will escort tankers through the Strait of Hormuz, if necessary.

Investors in the region will also be watching an annual parliamentary meeting by China's policymakers that kicks off later in the day.

The gathering, dubbed the 'Two Sessions,' consists of a consultative congress that will start later in the day, and a National People's Congress due to open Thursday. Chinese Premier Li Qiang is set to announce a series of economic targets at the NPC, which had largely been decided at a December meeting.

Meanwhile, China's factory activity faltered in February as manufacturers paused production and cargo shipments to celebrate an extended holiday, an official survey showed on Wednesday.

The official manufacturing purchasing managers index fell to 49 in February, according to the National Bureau of Statistics, missing the widely reported forecast of 49.1.

Overnight in the U.S., socks had another wild session as concerns around a prolonged U.S.-Iran conflict rattled markets.

The Dow Jones Industrial Average lost 403.51 points, or 0.83%, and ended at 48,501.27. The S&P 500 slipped 0.94% to close at 6,816.63, while the Nasdaq Composite shed 1.02% to settle at 22,516.69.

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