Dalal Street rattled by Middle East conflict; Nifty, Sensex suffer big losses

Indian stock markets opened sharply lower on Monday as escalating military tensions in the Middle East rattled investor sentiment. The Nifty 50 fell 519.40 points, or 2.06 per cent, to 24,659.25, while the BSE Sensex dropped 2,775.14 points, or 3.41 per cent, to 78,512.05. The sell-off reflected heightened nervousness across domestic equities amid geopolitical uncertainty.

Experts noted that markets were trying to find direction after reports that Iran’s new leadership signalled willingness to resume negotiations with the US and would not block the Straits of Hormuz. However, concerns about rising oil prices, disruption of trade with Gulf partners, and the safety of around nine million Indians working in the region kept investors cautious.

Widespread Losses Across Sectors

Broader indices also suffered, with the Nifty 100 down more than 2 per cent, Nifty Midcap 100 falling 3.43 per cent, and Nifty Smallcap 100 sliding 3.78 per cent. Sectoral indices mirrored the trend, as Nifty Auto declined 3.42 per cent, Nifty FMCG fell 2.3 per cent, and Nifty IT dropped 1.91 per cent, indicating selling pressure across all major sectors.

Analyst Sunil Gurjar, founder of Alphamojo Financial Services, noted that the Nifty slipping below its 200-day EMA signals emerging long-term weakness. A sustained close below this level in coming sessions could trigger further declines, while a rebound would indicate support and potential renewed bullish momentum.

Global Markets Also React

Commodities and international markets reflected the risk-off sentiment. Gold surged 3 per cent to Rs 1,67,329 per 10 gm, and silver jumped 3.89 per cent to Rs 2,85,700 per kg. Across Asia, Japan’s Nikkei 225 fell 1.55 per cent, Singapore’s Straits Times lost 1.86 per cent, Hong Kong’s Hang Seng dropped over 2 per cent, and Taiwan’s weighted index slipped 0.33 per cent. In the US, Dow Jones Futures were down 0.77 per cent, while S&P 500 and Nasdaq closed lower on Friday, highlighting continued global selling pressure.