Indian Markets Plummet Amid US-Iran Conflict and Soaring Crude Prices

India's stock markets suffered a downturn on August 31, 2026, as tensions between the US and Iran escalated. The Nifty index traded lower at around 24,059. Rising crude oil prices above $90 per barrel due to the geopolitical unrest weighed heavily on market sentiment. While stocks like ONGC, Zomato, and HDFC Bank posted gains, metal majors and consumer goods stocks faced selling pressure.

The uncertainty in the markets was further compounded by leadership changes at HDFC Bank. The bank's CEO had decided not to seek a third term. Market participants also kept an eye on upcoming GDP growth data for the April to June quarter. Meanwhile, Finance Minister announced that the government remains committed to reducing government debt to 50% of GDP by 2030 while maintaining fiscal discipline and social welfare expenditure.

MSCI index rebalancing led to trading activity across newly included and excluded stocks. Despite the volatility, precious metals like gold and silver traded lower on the Multi Commodity Exchange.