India, March 9 -- India's stock market slumped to the lowest in nearly a year as the widening Iran war sent crude oil prices soaring, threatening to reignite domestic inflation and strain the rupee.

The 30-share S&P BSE Sensex fell as much as 3.16% - or 2,494.35 points - to 76,424.55 points, while the wider NSE Nifty 50 shed up to 3.07% to an intraday low of 23,697.80 points. The market turmoil is being driven by a violent spike in energy markets. Brent crude oil prices have surged enough to test $120/barrel levels.

"Big oil importers like India will be hit hard if the Iran war lingers long and crude price remains high," V.K. Vijayakumar, chief investment strategist at Mumbai-based Geojit Investments Ltd., told Hindustan Times over emai...