Indian benchmark indices experienced their worst single-day fall since March 30 following US President Trump's declaration that the ceasefire with Iran was over. Nifty 50 plunged 485.80 points or 1.99% to trade at 23,912.90, while Sensex tumbled 1,600 points or 2.05% to trade at 76,580.39. The decline was triggered by Trump's announcement that the ceasefire with Iran was over, creating fresh market uncertainty. Wall Street indices also opened in the red, with Dow Jones losing nearly 600 points and trading over 1% lower at 52,394.48. Among the top losers on the Nifty, IndiGo tumbled 5.08%, followed by Maruti Suzuki (-3.83%), Hindustan Unilever (-3.32%), Bajaj Finance (-3.08%), Kotak Mahindra Bank (-2.91%), and Mahindra & Mahindra (-2.85%). Broad-based selling was seen across sectors, with financials, FMCG, auto and healthcare stocks leading the decline.
Global markets experienced significant volatility following the US expansion of military strikes on Iran, with Wall Street ending mixed amid geopolitical uncertainty. According to ET Now, the Nasdaq Composite bucked the broader weakness, rising 0.2% to finish at 25,870.65, supported by gains in technology stocks. However, European markets ended in red, with the FTSE 100 falling around 1.7% to close at 10,489.04, while France's CAC 40 declined more than 2% to settle at 8,252.66. Germany's DAX emerged as one of the worst-performing major European indices, dropping 2.23% to close at 24,897.45. The renewed escalation in US-Iran tensions rattled investor sentiment across asset classes, triggering volatility in equities, commodities and other financial markets as traders reassessed geopolitical risks.
Oil prices surged significantly amid Middle East tensions, with Brent crude, the global benchmark, surging more than 6% by 10:45 CEST to $78.79 per barrel, while US benchmark crude advanced 6.3% to $74.88 per barrel. As per The Economic Times, Indian markets witnessed broad-based selling on Wednesday, with the Nifty declining 2.1% to close at 23,882, reflecting the weak global backdrop and deteriorating risk sentiment. India VIX, which measures market fear, rose 26% to settle at 14.68 levels, reflecting increased volatility expectations. The US had also rescinded a waiver that had enabled Iran to restart crude exports, adding to the supply concerns. Asian markets showed mixed performance, with Japan's Nikkei 225 falling 2.1% to 66,819.05 and South Korea's Kospi tumbling 5.4% to 7,246.79.
AI-related technology stocks experienced significant declines alongside the broader market selloff, with Samsung dropping 6.3% early Wednesday after falling about 7% the prior day and SK Hynix giving up early gains to close 5.7% lower. According to Reuters, the South Korean index had rallied and then retreated, briefly exceeding the 9,000 mark last month before experiencing heavy selling in AI-related technology stocks. The decline occurred amid worries that the enthusiasm for artificial intelligence stocks has driven valuations beyond the productivity improvements and earnings that might result from heavy spending on chip fabrication capacity and data centers. Advanced Micro Devices plunged 6.5%, Intel dropped 9.7%, and Micron Technology fell 4.7% on Tuesday, while SpaceX, which owns the xAI business, declined 6.8% on its debut trading day in the Nasdaq-100 index.
According to market reports, Nifty July futures is down 2.24% to 23,892.70 at a premium of 10 points, indicating continued pressure. The market faces no securities in ban period for F&O trading. Key technical levels show Maximum Call open interest at 24,500 and Maximum Put open interest at 23,500. Foreign institutional investors (FIIs) were net buyers of shares worth ₹393.19 crore, while Domestic institutional investors (DIIs) were net sellers of shares worth ₹383.43 crore on July 07, 2026, according to provisional NSE data. India VIX, which measures market fear, rose 26% to settle at 14.68 levels, reflecting increased volatility expectations. Analysts say Indian equities are expected to remain volatile in the near term as global risk sentiment has deteriorated following US President Donald Trump's comments on ending the ceasefire with Iran and withdrawing from the MoU. For the next few sessions, the base case is volatile consolidation with a bearish bias unless crude cools and the conflict narrative improves.
