Indian Stock Markets Decline Amid US-Iran Tensions and Weak IT Earnings

Stock market crash today: Nifty50 and BSE Sensex continued their downward streak on Friday, dropping on negative global cues and weak sentiment in IT stocks. The stock market is under pressure for a third straight session, with both the BSE Sensex and the NIFTY 50 losing about 1 per cent amid mounting concerns over rising tensions between the United States and Iran. The geopolitical uncertainty has fuelled a fresh rally in oil prices, weighing heavily on investor sentiment, even as the broader market showed relative resilience. The sell-off erased nearly Rs 6 lakh crore in investor wealth, with the total market capitalisation of all companies listed on the BSE falling to around Rs 460 lakh crore.

Technology stocks bore the brunt of the selling. Shares of Infosys, HCLTech, Tech Mahindra and Tata Consultancy Services fell between 2 per cent and 4 per cent after Infosys’ fourth-quarter results failed to meet market expectations.

Why is stock market down today? Top reasons

US-Iran war: A key driver behind today’s downturn was the worsening standoff between Iran and the United States. Hopes of easing tensions through a second round of negotiations have faded, particularly as the US continues its blockade around the Strait of Hormuz. Adding to concerns, Iran has reportedly deployed swarms of small, fast vessels to seize at least two container ships near the strategic waterway, casting doubt on claims that Tehran’s naval capabilities had been effectively neutralised. US President Donald Trump acknowledged that while Iran’s conventional naval fleet had been largely weakened, its fast-attack boats remain a concern. He warned that any such vessels approaching the US blockade would be dealt with immediately.

Oil prices continue to climb: Crude oil prices moved higher as concerns intensified over potential supply disruptions through the Strait of Hormuz. Brent crude was trading close to $106 a barrel, while West Texas Intermediate hovered around $96 per barrel. After briefly slipping below the $100 mark earlier this month, crude has once again regained upward momentum.

Rupee remains under pressure: The Indian rupee weakened further on Friday, declining by 24 paise to 94.25 against the US dollar. The domestic currency has now fallen every day this week.

Foreign investors continue to sell: Foreign institutional investors remained net sellers in Indian equities on Thursday, offloading shares worth Rs 3,255 crore.

Global markets deliver a mixed picture: Equity markets traded on an uneven note. KOSPI in South Korea fell by about 1 per cent, while Japan’s Nikkei 225 advanced roughly 0.4 per cent. In China, the Shanghai Composite Index declined 0.6 per cent, and Hong Kong’s Hang Seng Index also traded lower. Overnight, NASDAQ Composite led the decline on Wall Street, ending nearly 0.9 per cent lower.

Bond yields move higher: Renewed market concerns also pushed bond yields upward. The yield on the benchmark US 10-year Treasury note climbed to 4.33 per cent. The 30-year Treasury yield rose to 4.92 per cent, while the yield on the 2-year note jumped to 3.84 per cent.

Infosys earnings weigh on sentiment: Investor sentiment on Dalal Street was also affected by disappointing market reaction to Infosys’ latest quarterly results. For the quarter ended March 31, 2026, the company posted a consolidated net profit of Rs 8,501 crore, marking a 21 per cent increase from Rs 7,033 crore in the same period a year earlier. Despite the rise in profit, the results fell short of market expectations. Following the earnings announcement, brokerages including Jefferies and Morgan Stanley lowered their target prices for the stock.