On April 9, 2026, Indian stock markets experienced a sharp decline, with the BSE Sensex falling 938.55 points to a low of 76,624.35 and the Nifty50 dropping 238 points to 23,759.45. This downturn was primarily influenced by escalating tensions between the US and Iran, following US President Donald Trump's announcement to keep military forces stationed near Iran until compliance with a ceasefire agreement. Additionally, Iran's closure of the Strait of Hormuz, a critical maritime route for global oil supplies, further heightened concerns. Oil prices surged, with Brent crude reaching $97.35 per barrel, exacerbating inflation fears in India, where 80-85% of crude oil needs are imported. The Reserve Bank of India (RBI) noted rising global uncertainties and projected a GDP growth forecast of 6.9% for FY27, which is lower than previous estimates. Despite these developments, foreign institutional investors continued to sell off Indian equities, totaling ₹37,933.35 crore in sales for April alone, while domestic institutional investors bought equities worth ₹4,168.17 crore. The market's decline also reflected profit booking after a significant rally on the previous day.