The Indian stock markets kicked off the week with a grim plunge as heightened tensions between Iran and Israel sent shockwaves through global markets.
The BSE Sensex nosedived 800 points intraday, while the Nifty 50 slipped below the crucial 24,900-mark, alarming investors bracing for sustained volatility.
The mood on Dalal Street turned jittery after reports confirmed a U.S. airstrike on Iranian nuclear facilities, amplifying fears of retaliation from Tehran. Experts believe that while a direct Iranian offensive on the U.S. or Israeli military assets could further intensify the conflict, markets are currently pricing in a calibrated response.
“The situation remains fragile. If Iran escalates significantly, we may see a larger correction. So far, the market’s reaction has been tempered by expectations of a limited fallout,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Early trade painted a stark picture — Sensex dropped 518 points to open at 81,889.40, while the Nifty fell 143.30 points to 24,969.10. Sectoral indices echoed the pessimism, with Nifty Bank opening in the red and heavyweight tech and FMCG stocks like Infosys and Hindustan Unilever dragging the market deeper.
In contrast, select defensive counters such as Bharat Electronics and Bharti Airtel showed resilience, topping the gainers’ list.
Across Asia, indices followed suit. Japan’s Nikkei 225 slipped 0.56%, South Korea’s Kospi dropped 1%, and the Kosdaq plunged 1.78%, all reflecting rising geopolitical anxiety.
On the technical front, the charts showed some hope. “Despite the plunge, the Nifty is trading above its 20-day SMA, and the daily chart reveals a higher bottom formation, hinting at potential recovery if global cues stabilise,” noted Shrikant Chouhan from Kotak Securities.
However, with the Volatility Index spiking 5%, traders remain on edge. As global diplomacy grapples with a potential escalation in West Asia, investors will closely watch crude oil prices, currency movements, and institutional flows for cues.
