Sensex, Nifty crash: Why is the Indian stock market falling today?

BEnchmark amerindic equity indices opened acutely let down on mon amid rising rough oil prices triggered by escalating geopolitical tensions in the Middle East.The Sensex fell 1,561.71 points, or 1.92 per cent, to 79,725.48, while the Nifty dropped 484.30 points, or 1.92 per cent, to 24,694.35 at 12:30 pm. From the Sensex constituents, InterGlobe Aviation, Larsen & Toubro, Eternal, Adani Ports, Asian Paints, UltraTech Cement and Reliance Industries were among the top laggards.Also read| Sensex down 2,743 points, Nifty 50 well below 25,000 as Iran war ignites stock marketBharat Electronics was the only gainer in the pack.Brent crude, the global benchmark, fell 5.38 per cent to $76.79 per barrel.Middle East conflict drives market volatilityMarkets reacted to heightened tensions in the Middle East following a coordinated US-Israeli airstrike in Tehran that killed Iran's Supreme Leader Ayatollah Ali Khamenei early Saturday. Iranian state media confirmed his death on Sunday.In response, Iran launched missile attacks targeting Israel and several Arab nations, stoking fears of prolonged regional instability.Soon after the, tensions across the Middle East escalated. Saudi Arabia said Iran launched attacks targeting its capital and eastern regions, but claimed they were repelled. Bahrain reported a missile strike aimed at the US Navy’s Fifth Fleet headquarters. Kuwait said a drone strike near its main international airport injured several employees and troops.Jordan said it “dealt with” 49 drones and ballistic missiles. Explosions were also reported in Qatar. In Yemen, Iran-backed Houthi rebels pledged to resume attacks on Red Sea shipping lanes and Israel.Several countries, including Iran, Iraq, Israel, Syria, Kuwait and the UAE, closed their airspace as a precaution.Asian markets were mixed, with Japan's Nikkei 225 and Hong Kong's Hang Seng index trading lower, while Shanghai’s SSE Composite index remained in positive territory. US markets closed lower on Friday.“The uncertainty related to the war in West Asia will loom large over the market in the near-term. The major risk from the market perspective is the energy risk arising from the surge in crude,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.FII outflows and DII supportForeign Institutional Investors (FIIs) sold equities worth ₹7,536.36 crore on Friday, according to exchange data, while Domestic Institutional Investors (DIIs) bought stocks valued at ₹12,292.81 crore.“For investors, the risk extends beyond energy. Prolonged regional instability could disrupt trade routes, strain supply chains and tighten global financial conditions if inflation expectations re-accelerate,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.On Friday, the Sensex had already dropped 961.42 points, or 1.17 per cent, settling at 81,287.19, while the Nifty fell 317.90 points, or 1.25 per cent, to close at 25,178.65.(With PTI inputs)