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On March 9, 2026, Dalal Street met its bloodbath as benchmark indices dropped slightly at the open as the situation in the Middle East erupted. The BSEN Sensex crashed by almost 2400 points (about 3 percent) to a close of about 76424, and the NSE Nifty 50 tumbled by a margin of more than 700 points to below 23800 in just a few minutes of trading, a value to the tune of 12395304.8 million crore of market capital.

The main cause was the continued US-Israel-Iran war, which worsened during the weekend with attacks on oil infrastructure and threats on major shipping routes such as the Strait of Hormuz. This propelled Brent crude soaring beyond 118 barrels, almost 4 years' highs, inflation concerns, India, an oil-important economy, and rupee rupture strain.

The decision was aggravated by wider international risk aversion, and losses in energy, banking, and the automobile industry were massive. The India VIX shot up to more than 20 percent, indicating extreme volatility. Analysts are cautious about further downside in case the war continues, but there is some potential of recovery in case the tension between the sides cools. Investors are urged to be cautious when it comes to macroeconomic headwinds.