Indian shares fall, Indian rupee drops to record low as Iran war rattles markets

Indian equities slumped and the Indian rupee fell to 93.98 against the U.S. dollar on Monday, tracking declines across Asia as the Middle East conflict kept oil prices high and raised concerns over global growth.

The Nifty 50 and the Sensex are down 10.6% each since the Iran war began at the end of February as foreign investors pulled out, while surging oil prices stoked inflation fears and darkened the country’s growth outlook.

The Nifty 50 fell 2.6% to 22,512.65 on Monday, while the Sensex lost 2.46% to 72,696.39, both slipping to oversold territory.

All 16 major sectors fell. Small-cap and mid-cap indexes dropped 3.9% each. The volatility index, which tracks expected swings over 30 days, rose to 27.17 during the session, its highest since early June 2024.