Market Brief: Geopolitical Tensions Spark Sharp Correction Indian equity markets faced a significant downturn during the latest session, abruptly halting a three-day rally. The **BSE Sensex plummeted 1,236.11 points (1.48%)** to close at **82,498.14**, while the **NSE Nifty 50 dropped 365 points (1.41%)** to settle at **25,454.35**. The sell-off erased approximately **₹7.55 lakh crore** in investor wealth as risk aversion swept through almost all sectoral indices. Energy Crisis and Imported Inflation The primary catalyst for the decline is the escalating tension between the United States and Iran. Concerns over potential military action and disruptions in the **Strait of Hormuz**—a critical passage for 20% of global oil—pushed **Brent crude** to a year-to-date high above **$71 per barrel**. For India, which imports over **85%** of its crude requirements, the surge raises immediate alarms regarding imported inflation and a widening trade deficit. While upstream explorers like **Oil India (+5.2%)** and **ONGC (+3.6%)** gained on higher realizations, oil marketing companies like **HPCL (-5%)** and **BPCL (-3.4%)** faced heavy selling due to anticipated margin compression. Institutional and Currency Activity Market sentiment was further weighed down by cautious institutional flows. In the cash segment, **Foreign Institutional Investors (FIIs)** were net sellers of **₹880.49 crore**, joined by **Domestic Institutional Investors (DIIs)** who offloaded **₹596.28 crore**. The **Indian Rupee** remained under pressure, trading near the **91.07** level against the US Dollar. The combination of high oil prices, a weakening currency, and rising US bond yields has created a challenging macro environment for domestic equities. Sectoral Performance and Outlook The selling was broad-based, with **Realty, Auto, and Power** sectors each shedding nearly **2%**. Large-cap heavyweights including **Reliance Industries, HDFC Bank, and ICICI Bank** led the downward move as investors locked in profits following the recent streak of gains. Technically, the **Nifty 50** has breached immediate support levels. Analysts suggest the index may test the **25,370 - 25,230** range if the geopolitical situation does not stabilize. Investors are now closely monitoring the US Federal Reserve’s upcoming policy signals for clues on the global interest rate trajectory.