The Nifty 50 fell more than 200 points in just 15 minutes on Wednesday, slipping below the 24,000 mark and erasing gains from the previous four sessions as selling intensified across the market. This comes after US President Donald Trump lashed out at Iran, calling Tehran "dirty players" and declaring the ceasefire between the two countries effectively over, in his first remarks since confirming a fresh round of American strikes overnight.
Brent crude also surged 4.2% to $78.38 per barrel.
The index fell as much as 2% to 23,91520, marking its biggest intraday decline since May 12. As many as 47 of the 50 Nifty constituents were trading in the red.
The Sensex also tumbled 2%, falling to an intraday low of 76,577.33.
All sectoral indices slipped into the red, with every index except Nifty Metal falling more than 1%. Financial services, PSU banks, FMCG and oil and gas were among the biggest sectoral losers.
The broader markets also followed the benchmark indices lower, while India VIX rose to 14.38, signalling increased volatility.
Jio Financial Services was the top loser on the Nifty 50, falling 5%.
Speaking in Ankara, where he is attending the NATO summit, Trump said: "We attacked very powerfully last night against Iran." He said the strikes were retaliation for Iranian attacks on commercial vessels, adding: "Iran shot rockets at ships, that's why US hit back."
He went on to brand Iran "dirty players" and "scum," saying: "We wasted a lot of time with Iran," and separately called Tehran "incompetent," adding: "Iran doesn't know what it's doing."
Asked directly whether the ceasefire between Washington and Tehran was over, Trump replied: "I think it's over," adding, "As far as I'm concerned, it's over."
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