Global market meltdown: Rupee drops to record 92.28 and stocks dive as Iran-Israel war intensifies

Mumbai: Indian financial markets faced a brutal sell-off on Monday morning, March 9, 2026, as the escalating conflict between the US-Israel alliance and Iran sent shockwaves through global economies. The domestic equity benchmarks, Sensex and Nifty, witnessed one of their steepest opening crashes, while the Indian Rupee (INR) tumbled toward an all-time low.

The BSE Sensex crashed 2,345.89 points in early trade, hitting 76,573.01. Simultaneously, the NSE Nifty 50 plummeted 708.75 points, struggling to maintain the 23,741.70 level.

Investor sentiment has been decimated by a massive surge in Foreign Institutional Investor (FII) outflows.

Rupee plummets near record low

The Indian Rupee fell 46 paise to hit 92.28 against the US Dollar in early trade, coming dangerously close to its all-time intraday low of 92.35 set on March 4.

Forex experts point to the Dollar Index, which rose 0.66% to 99.64, as a sign of the greenback’s dominance during geopolitical instability. Analysts at Finrex Treasury Advisors warn that if Brent crude remains above $100, the Rupee could touch the 93.00 mark in the coming sessions.

Oil shock: Brent crude surges 25%

The primary catalyst for the market carnage is the staggering 25.68% spike in Brent crude prices, now trading at $116.5 per barrel. As India imports over 80% of its oil, this surge threatens to widen the current account deficit and trigger runaway inflation.

"The rupee will remain vulnerable to the rising oil prices which have risen by more than 28 per cent since the last closure on Friday. Asian currencies were also lower on Monday," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Record forex reserves

Despite the market volatility, the Reserve Bank of India (RBI) remains armed with significant firepower. India’s forex reserves jumped by $4.885 billion to an all-time high of $728.494 billion (as of the week ended Feb 27), providing a crucial buffer against a total currency collapse.