Synopsis: The Indian stock market witnessed a massive sell-off on Thursday, February 19, 2026, with the BSE Sensex plunging 1,236 points (1.48%) to close at 82,498. The “Zero-Minute” fact is that escalating geopolitical tensions—specifically fears of a U.S. military strike on Iran—combined with Brent crude hitting year-to-date highs and hawkish US Fed minutes, triggered a “risk-off” sentiment that wiped out nearly ₹8 lakh crore in investor wealth.
On Thursday, February 19, 2026, Dalal Street’s benchmark indices snapped a three-day winning streak in a high-intensity afternoon sell-off. The NSE Nifty 50 slumped 365 points (1.41%) to settle at 25,454. While the markets opened on a firm note, global jitters quickly turned the tide, leading to broad-based selling across Realty, Auto, and Energy sectors. The India VIX, a gauge of market volatility, spiked over 10% to 13.50, reflecting rising investor anxiety.
5 Key Reasons Behind Today’s Market Crash
1. U.S.–Iran Conflict Fears
The primary catalyst was reports indicating a potential military escalation in the Middle East. News surfaced that the U.S. military might be preparing for a strike on Iran, with some analysts warning of a “massive, weeks-long campaign.” This triggered an immediate flight to safety, with investors taking money off the table ahead of the weekend.
2. Brent Crude Hits YTD Highs
Concerns over supply disruptions in the Strait of Hormuz—through which 20% of the world’s oil passes—pushed Brent crude futures to $70.58 per barrel. As one of the world’s largest oil importers, India is highly sensitive to price surges, which threaten to widen the trade deficit and fuel domestic inflation.
3. Hawkish US Fed Minutes
Minutes from the Federal Reserve’s January meeting revealed deep divisions. While most officials supported a “pause,” several raised the risk of future rate hikes if inflation remains above the 2% target. This “higher-for-longer” narrative tempered expectations for a mid-2026 rate cut and drove US bond yields higher, putting pressure on emerging market capital flows.
4. Thin Liquidity & Lunar New Year
The sell-off was intensified by muted participation from Foreign Institutional Investors (FIIs) due to the Lunar New Year holidays across major Asian markets like China and Hong Kong. Additionally, today was a non-settlement day in India due to a banking holiday, which affected trading mechanics and liquidity.
5. Broad-Based Profit Booking
After three days of gains, the market was ripe for a correction. The Nifty Realty index fell the most (down 2.56%), followed by Power and Auto. Heavyweights like Reliance Industries, Mahindra & Mahindra (-3%), and UltraTech Cement were major drags on the Sensex.
Sectoral Performance & Major Laggards
| Sector | Impact | Major Laggards |
| Nifty Realty | -2.56% | DLF, Godrej Properties |
| Nifty Auto | -1.80% | M&M, Tata Motors |
| Nifty Bank | -1.32% | Kotak Bank, ICICI Bank |
| Nifty IT | Mixed | Tech Mahindra (TCS and Infosys held gains) |
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The Bottom Line
While today’s 1,236-point crash was severe, market experts view it as a reaction to global fragility rather than a structural failure of the Indian economy. For the Aam Aadmi investor, the focus remains on the 25,400 support level for Nifty. If geopolitical tensions de-escalate, the “India-US Trade Deal” optimism and healthy Q3 results could help the market find a floor.
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