Sensex, Nifty: Why stock market is falling today; US-Iran news, oil prices & more
At 9.21 am, the BSE Sensex was down 797.98 points or 1.08 per cent at 73,308.87. Nifty stood at 22,763.65, down 204.60 points or 0.89 per cent . The indices later cut losses.
- Apr 7, 2026,
- Updated Apr 7, 2026 9:47 AM IST
Benchmark stock indices Sensex and Nifty fell up to 1 per cent in Tuesday's trade, snapping their three-day winning run, as Brent stayed above $110 a barrel mark amid concerns over a possible US retaliation later in the day after Iran rejected a US ceasefire proposal and sent its own 10-point proposal that the US President Donald Trump reportedly said was "not good enough".
There were also concerns that the Reserve Bank of India (RBI) may cut GDP forecast and increase inflation outlook in its ongoing policy review.
At 9.21 am, the BSE Sensex was down 797.98 points or 1.08 per cent at 73,308.87. Nifty stood at 22,763.65, down 204.60 points or 0.89 per cent . The indices later cut losses.
Devarsh Vakil, Head of Prime Research at HDFC Securities noted that Iran has dismissed a US-backed 45-day ceasefire proposal supported by mediators including Pakistan, Egypt, and Türkiye. It instead demanding a permanent end to hostilities, sanctions relief, and war damage compensation.
"WTI Crude Oil climbed to $115 as President Trump reaffirmed his deadline for Iran to reopen the Strait of Hormuz, threatening strikes on Iranian power plants and bridges. The Strait, which handles roughly one-fifth of global oil flows, has remained disrupted since the conflict began on February 28, driving crude prices up approximately 90 per cent year-to-date," he noted.
On Tuesday, Brent futures for June delivery were trading 1.66 per cent higher at $111.59 a barrel against previous day's closing of $109.77 a barrel.
Trump’s ultimatum to Iran to “open the Hormuz Strait or face hell” will be viewed with interest by market participants despite the president’s notorious inconsistency in threats, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
Vijayakumar said the recent FPI selling is purely short-term guided only by the weakness in the rupee and high bond-yields in the US. "Patient investors who can sit through this period of short-term aberration have an opportunity with low risk to buy the high quality financials, particularly the leading banking stocks," he said.
Foreign brokerage Nomura had on Monday noted that tensions in the West Asia remained elevated with President Trump hinting at further escalation over the next couple of weeks. It cited earlier reports that the US was considering a unilateral removal from the conflict, even as the troops and military assets continue to amass in the region.
Meanwhile, there are concerns that the RBI may moderate GDP growth expectations to 6.5–6.8 per cent and will likely raise inflation expectations to 3.5-4 per cent for FY27E.
JM Financial said the current situation is not comparable to the ‘taper tantrum’ period, which was a result of the Fed’s miscommunication on policy tightening. In contrast, it said, the current situation is an upshot of the global supply-side disruption.
"Markets would be keen to know the RBI governor’s view on currency and fiscal management—even though they do not come under the MPC’s purview. We expect the recent appreciating bias in the INR to be short-lived, unless the Strait of Hormuz opens up and crude oil prices moderate to manageable levels," it said.
Benchmark stock indices Sensex and Nifty fell up to 1 per cent in Tuesday's trade, snapping their three-day winning run, as Brent stayed above $110 a barrel mark amid concerns over a possible US retaliation later in the day after Iran rejected a US ceasefire proposal and sent its own 10-point proposal that the US President Donald Trump reportedly said was "not good enough".
There were also concerns that the Reserve Bank of India (RBI) may cut GDP forecast and increase inflation outlook in its ongoing policy review.
At 9.21 am, the BSE Sensex was down 797.98 points or 1.08 per cent at 73,308.87. Nifty stood at 22,763.65, down 204.60 points or 0.89 per cent . The indices later cut losses.
Devarsh Vakil, Head of Prime Research at HDFC Securities noted that Iran has dismissed a US-backed 45-day ceasefire proposal supported by mediators including Pakistan, Egypt, and Türkiye. It instead demanding a permanent end to hostilities, sanctions relief, and war damage compensation.
"WTI Crude Oil climbed to $115 as President Trump reaffirmed his deadline for Iran to reopen the Strait of Hormuz, threatening strikes on Iranian power plants and bridges. The Strait, which handles roughly one-fifth of global oil flows, has remained disrupted since the conflict began on February 28, driving crude prices up approximately 90 per cent year-to-date," he noted.
On Tuesday, Brent futures for June delivery were trading 1.66 per cent higher at $111.59 a barrel against previous day's closing of $109.77 a barrel.
Trump’s ultimatum to Iran to “open the Hormuz Strait or face hell” will be viewed with interest by market participants despite the president’s notorious inconsistency in threats, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
Vijayakumar said the recent FPI selling is purely short-term guided only by the weakness in the rupee and high bond-yields in the US. "Patient investors who can sit through this period of short-term aberration have an opportunity with low risk to buy the high quality financials, particularly the leading banking stocks," he said.
Foreign brokerage Nomura had on Monday noted that tensions in the West Asia remained elevated with President Trump hinting at further escalation over the next couple of weeks. It cited earlier reports that the US was considering a unilateral removal from the conflict, even as the troops and military assets continue to amass in the region.
Meanwhile, there are concerns that the RBI may moderate GDP growth expectations to 6.5–6.8 per cent and will likely raise inflation expectations to 3.5-4 per cent for FY27E.
JM Financial said the current situation is not comparable to the ‘taper tantrum’ period, which was a result of the Fed’s miscommunication on policy tightening. In contrast, it said, the current situation is an upshot of the global supply-side disruption.
"Markets would be keen to know the RBI governor’s view on currency and fiscal management—even though they do not come under the MPC’s purview. We expect the recent appreciating bias in the INR to be short-lived, unless the Strait of Hormuz opens up and crude oil prices moderate to manageable levels," it said.