Sensex Drops 931 Points as Iran Ceasefire Hopes Fade
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- Sensex plunged 931 points to close at 76,632 and Nifty50 declined over 222 points to 23,775, fully erasing Wednesday's blockbuster rally that had followed the Iran-US ceasefire announcement.
- Iran accused both Israel and the US of violating the ceasefire, called proceeding with peace talks "unreasonable," and kept the Strait of Hormuz shut for vessels attempting passage.
- Trump posted on Truth Social that US ships, aircraft, and military personnel would remain "in, and around, Iran" until the deal is "fully complied with," warning that the "'Shootin' Starts'" if terms are breached.
- Brent crude futures jumped over 3% to $97.76 a barrel and WTI gained nearly 3% to $97.41, reversing Wednesday's sharp drop from as high as $110 to below $95 after the ceasefire news.
- Foreign institutional investors were net sellers of Indian equities for the 26th consecutive session, offloading shares worth nearly Rs 2,812 crore on Wednesday, even as domestic institutional investors remained net buyers.
- The Indian rupee fell to 92.6575 against the US dollar, and India VIX gained more than 3% after dropping around 20% in the prior session.
- Global markets traded in the red — Japan's Nikkei and Hong Kong's Hang Seng fell 0.5% each, South Korea's Kospi dropped nearly 2%, Germany's DAX and France's CAC declined around 1% each, and UK FTSE fell 0.4%.
Why it matters: Indian markets erased their entire Wednesday post-ceasefire rally in a single session, with the Sensex surrendering the 5,600-point gain built over five sessions. With crude back above $95, FIIs selling for 26 straight sessions, and the Strait of Hormuz still shut despite the truce, the 8% April relief rally is now wholly dependent on weekend negotiations producing a durable outcome — and analysts say sentiment stays cautious until that clarity emerges.
