Heightened volatility is gripping India’s benchmark Nifty 50 index as the protracted conflict between Iran and Israel continues to weigh on investor sentiment.
The persistent threat of regional escalation is driving a sharp repricing of risk assets, with market participants increasingly demanding higher premiums for holding equities in emerging markets.
The broader macro backdrop is compounding the pressure on Indian equities.
The Indian rupee and other regional currencies are facing renewed selling pressure as the widening military confrontation triggers a classic flight to safety.
Simultaneously, shares of India’s state-run banks have fallen sharply, dragged down by climbing U.S. Treasury yields that have reached a two-year high.
This dual squeeze reflects a broader shift in global risk appetite, with capital rotating away from growth-oriented assets toward safer havens.