Desk Correspoondent , Mumbai - Indian equity markets plunged on Thursday, April 2, 2026, as the BSE Sensex sank over 1,400 points and the Nifty 50 shed more than 400 points, wiping out roughly ₹10 lakh crore in investor wealth in a single trading session. The sharp correction was driven by a surge in risk aversion after remarks from US President Donald Trump about the ongoing Iran related military campaign heightened fears of a prolonged Middle East conflict and a spike in global oil prices.

The Sensex dropped by around 1,400-1,470 points in early trade, slipping about 1.9-2% to levels near 71,700, while the Nifty 50 fell roughly 420-450 points, dropping below the 22,250 mark and closing around 22,200-22,240 in early trades. Analysts estimate that the across the board sell off in large‑cap, mid‑cap, and small‑cap stocks led to a collective loss of approximately ₹10 lakh crore in market capitalisation, reflecting broad based panic among both domestic and foreign investors. The sell off was primarily triggered by geopolitical jitters in West Asia and a sharp rise in Brent crude oil prices toward around USD 105 per barrel, after US officials signalled a continuation of military action in Iran.

The global “fear gauge” India VIX spiked, foreign institutional investors (FIIs) intensified outflows, and banking and automobile stocks led the losses, dragging down the broader benchmarks. Market watchers warn that any further escalation in the Iran situation or renewed crude price spikes could keep Indian equities under pressure, at least in the short term.