Sensex and Nifty declined as higher crude oil prices and escalating Middle East tensions triggered broad-based selling across banking and auto.
Houthi rebels fired missiles and drones at Saudi Arabia after an airstrike on Sanaa airport, marking the biggest escalation since the 2022 ceasefire.
Brent crude oil surged above $86 per barrel after escalating US-Iran tensions raised concerns over disruptions in the Strait of Hormuz.
The U.S launched a new wave of strikes on Iran, while Tehran retaliated against U.S.-linked targets, raising fears of a wider regional conflict.
Experts warn prolonged war tensions could push oil prices higher, slow growth and create inflation pressure in India.