Sensex & Nifty Tumble on US-Iran Conflict, Rupee Slides to 95.70, NTPC Approves ₹20,457 Crore Lara Project

Indian financial markets faced a sharp sell-off on Monday, July 13, 2026, as escalating geopolitical tensions between the United States and Iran triggered a gap-down opening and sent crude prices soaring. The benchmark indices witnessed heavy volatility, with the NSE Nifty 50 testing the key 24,000 level and the BSE Sensex plunging over 600 points in early trade, before staging a partial recovery led by buying in the IT sector. Meanwhile, the Indian Rupee depreciated by 37 paise against the US Dollar to open at 95.70, and state-owned power giant NTPC captured headlines by approving a major ₹20,456.70 crore investment for Stage-III of its Lara Super Thermal Power Project.

📊 Dalal Street Tumbles as US-Iran Escalation Sparks Global Risk-Off Sentiment

Indian equity markets opened deep in the red on Monday, July 13, 2026, as geopolitical concerns in the Middle East rattled global investor confidence. A fresh round of military exchanges between the United States and Iran, coupled with threats of closure of the strategically critical Strait of Hormuz, sparked fears of a disruption in global energy supplies. The BSE Sensex opened 670 points lower, hitting an intraday low of 76,899.39, while the broader NSE Nifty 50 plummeted by over 200 points to test the critical psychological level of 24,000.20. Market volatility spiked, with the India VIX rising 9.8% to 14.50, reflecting heightened investor nervousness.

The morning sell-off was broad-based, with sectors like metal, banking, and automobiles bearing the brunt of the pressure. High beta stocks and metal exporters fell sharply on fears of global demand slowing down. However, the market staged a partial recovery by mid-morning, led by a recovery in major technology names like TCS, Infosys, and HCLTech, as investors sought safety in export-oriented sectors that stand to benefit from a weaker rupee. While institutional figures for the day are still trickling in, the early session witnessed panic selling from foreign institutional investors (FIIs), though local domestic institutional investors (DIIs) offered some support at lower levels.

💸 Rupee Slides 37 Paise to 95.70 on Surging Brent Crude and Strong Dollar Index

The Indian Rupee (INR) faced significant downward pressure on Monday, July 13, 2026, opening 37 paise weaker against the US Dollar at 95.70. The sharp depreciation was driven by the global spike in crude oil prices, which saw Brent crude jump over 4% to trade above $79 per barrel. As India imports more than 85% of its crude oil requirements, rising energy prices put pressure on the country's current account deficit and fan concerns over imported inflation, leading traders to bid up the US Dollar.

Additionally, the US Dollar Index (DXY) strengthened toward 104.80 as international investors rushed to safe-haven assets amidst the geopolitical turmoil. Analysts noted that the Reserve Bank of India (RBI) likely intervened selectively through state-run banks in the non-deliverable forward (NDF) and spot markets to curb excessive volatility and prevent a runaway depreciation beyond the 95.80 mark. Despite the RBI's substantial $674.19 billion foreign exchange reserve buffer, the rupee remained vulnerable to persistent foreign fund outflows and rising dollar demand from domestic oil importers.

⚡ NTPC Board Approves ₹20,457 Crore for Lara Thermal Power Expansion in Chhattisgarh

On the corporate front, state-run power major NTPC Limited stood out after its Board of Directors approved a capital expenditure proposal of ₹20,456.70 crore. The investment is earmarked for the Lara Super Thermal Power Project Stage-III (2x800 MW) in Chhattisgarh, which will add 1,600 MW of ultra-supercritical thermal capacity to the national grid. The stock stood resilient during the morning market sell-off, trading flat to marginally positive as investors cheered the company's expansion plans.

This major capacity addition aligns with NTPC's target to secure India's baseline power demand, which has been growing rapidly due to rising industrial activity and heat waves. The ultra-supercritical technology selected for Lara Stage-III is designed to improve fuel efficiency and lower carbon emissions per unit of power generated compared to older subcritical plants. The approval comes as NTPC continues to maintain a balanced approach, funding large-scale base-load coal projects to maintain grid stability while simultaneously scaling up its renewable energy subsidiary toward a 60 GW green capacity target by 2032.

📌 The Bottom Line

• market-selloff-geopolitics: The Nifty 50 fell to 24,000.20 and the Sensex plunged 670 points as US-Iran escalations sparked a global risk-off wave and spiked India VIX by nearly 10%.
• rupee-depreciation: The Rupee depreciated by 37 paise to 95.70 against the USD, heavily pressured by Brent crude spiking 4% to trade above $79 per barrel on Hormuz closure fears.
• ntpc-lara-expansion: NTPC's board approved a major ₹20,456.70 crore investment to expand the Lara Super Thermal Power Project Stage-III by 1,600 MW, supporting long-term grid security.