Gold and silver surged while mid- and small-cap stocks saw deeper cuts, as traders weighed oil supply risks and potential fallout for Gulf trade and Indian workers abroad.
Indian equity markets opened sharply lower on Monday, tracking global weakness amid rising geopolitical tensions. | Representational Image (IANS)
Indian equities began the week with heavy losses on Monday morning as rising military tensions in the Middle East unsettled global markets and triggered broad-based selling.
The sell-off comes amid fears that a prolonged confrontation involving Iran could disrupt oil routes through the Strait of Hormuz, push crude prices higher, and affect trade flows across the Gulf – developments that matter directly to India’s economy and millions of its citizens working in the region.
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At the opening bell, the NSE Nifty 50 slipped to 24,659.25, down 519.40 points or 2.06 per cent. The BSE Sensex fell 2,775.14 points, or 3.41 per cent, to 78,512.05.
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Selling pressure was visible across the market spectrum. The Nifty 100 fell more than 2 per cent. Mid- and small-cap stocks saw steeper declines, with the Nifty Midcap 100 losing 3.43 per cent and the Nifty Smallcap 100 dropping 3.78 per cent.
Sectoral indices were also deep in the red. Nifty Auto fell 3.42 per cent, FMCG stocks declined 2.3 per cent and IT shares were down 1.91 per cent in early trade.
Market expert Ajay Bagga told ANI that investors are navigating “a deeply uncertain world,” though early reports suggesting Iran may not block the Strait of Hormuz offered limited relief to risk assets during Asian trading hours.
According to Bagga, Indian markets are watching three potential spillover effects from the Iran-US conflict.
“The first risk transmitter is higher oil prices due to the de facto closure of the Straits of Hormuz. The second is the impact on major trading partners of India in the Gulf, with Indian exporters suffering due to the closure of these shipping lanes and supply chains. The third is the risk to the 9 million Indians who work in the Middle East,” he said.
He added that the most favourable scenario would involve renewed negotiations between Iran and the US, unhindered tanker movement through Hormuz and a halt to attacks on Gulf Cooperation Council (GCC) targets. The worst-case outcome, he said, remains a low-probability event.
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, pointed to technical weakness on the charts. He said the Nifty has slipped below its 200-day exponential moving average, a level widely tracked for long-term trend signals.
A sustained close below this mark in the coming sessions could deepen losses, he warned. However, a strong rebound from these levels may indicate that support is holding.
In commodities, investors moved towards safe-haven assets. Gold rose 3 per cent to Rs 1,67,329 per 10 grams (24 karat), while silver climbed 3.89 per cent to Rs 2,85,700 per kg.
Asian markets also mirrored the nervous mood. Japan’s Nikkei 225 declined 1.55 per cent, Singapore’s Straits Times fell 1.86 per cent, Hong Kong’s Hang Seng dropped more than 2 per cent and Taiwan’s weighted index edged lower.
US futures signalled continued caution, with Dow Jones Futures down 0.77 per cent. In the previous session, the S&P 500 slipped 0.43 per cent and the Nasdaq lost 0.94 per cent.
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