Nifty Plunges 2.1% as Trump's Iran Remarks Spook Markets

The Nifty 50 fell 2.1% on Wednesday, closing at 23,882. The sell-off was broad-based, with every sector in the red. The trigger was President Donald Trump's remarks signaling an end to the Iran ceasefire and a withdrawal from the memorandum of understanding, analysts said.

Global risk sentiment soured after Trump's statement. Indian markets, already sensitive to oil prices, took the brunt because the country imports roughly 80% of its crude. A sustained rise in crude would widen the current account deficit and pressure the rupee. Traders and analysts now expect the Nifty to stay volatile in the near term.

Wednesday's drop broke the 24,000 level, a psychological support that had held for two weeks. The index had been trading near 24,500 before the sell-off. Volume was above average, suggesting real distribution rather than a technical flush.

The next catalyst is the trajectory of the Iran situation. Any escalation would push oil higher and keep risk assets under pressure. For now, the Nifty closed at 23,882, down from Tuesday's close of 24,405.