New Delhi, March 4 -- It was a bloodbath on Dalal Street on Wednesday morning, as the Indian stock market suffered sharp losses in morning trade on March 4, as investors continued to dump risk assets amid the ongoing US-Iran war, which shows no signs of easing.

The conflict in West Asia has pushed crude oil prices significantly higher, stoking fresh inflation concerns and dealing a strong blow to expectations of near-term rate cuts by the US Federal Reserve and the Reserve Bank of India.

Sensex crashed nearly 1,800 points, or 2.2%, to drop to an intraday low of 78,443.20, while the Nifty 50 plunged over 550 points, or 2.3%, to the day's low of 24,305.40. The midcap and small-cap indices on the BSE crashed more than 2% each.

India VIX j...