The sudden deepening of geopolitical tension and war situation in West Asia created an atmosphere of heavy selling in the Indian stock market on Monday. Both the major indices Sensex and Nifty opened with huge losses, causing investors to lose over Rs 7.8 lakh crore in a matter of minutes. In early trade, Sensex fell 2,743 points to 78,543 and Nifty fell 519 points to 24,659, breaking the important support level of 25,000. At 10:39 am, the Sensex was seen trading at 80,227.78 with a fall of 1,059.41 (1.30%) points. At the same time, the 50-share Nifty was seen trading at 24,856.55 with a decline of 322.11 (1.28%) points.
Panic among investors due to ongoing fighting in West Asia
The main reason for the market crash is the outbreak of war in West Asia. Iran’s 86-year-old Supreme Leader Ayatollah Ali Khamenei and four members of his family were killed in alleged missile attacks by the US and Israel over the weekend. This major development has created an atmosphere of panic in the global markets.
Fear increased due to retaliatory attacks by Iran
After the death of Ayatollah Khamenei, retaliatory attacks by Iran in major areas of West Asia are the second major reason for the market fall. VK Vijayakumar, chief investment strategist at Geojit Investments, says that uncertainty related to war in West Asia will dominate the market in the near future. At the same time, according to Kranti Bathini of Wealth Mills Securities, the spread of tension to the UAE was unexpected, which will have a negative impact on the financial markets in the short-to-medium term.
Selling in the market is also related to crude oil
The tremendous rise in crude oil prices is the third biggest concern for the market. Brent crude futures prices rose to $82.37, the highest level since January 2025. Brent crude oil price rose by 7.60 per cent to $78.41 per barrel, while US West Texas Intermediate (WTI) crude futures rose by 7.19 per cent to $71.86. Iran has reportedly closed off shipping passing through the vital strait, prompting governments and oil refiners to assess oil reserves. Meanwhile, OPEC has agreed to resume increasing oil production next month in the wake of US and Israeli attacks on Iran. Major member countries, led by Saudi Arabia and Russia, will increase oil production by 206,000 barrels per day. This rise in crude oil is a serious threat to the economy and inflation rate. The reason for panic in the oil market is the fear of supply chain disruption in the ‘Strait of Hormuz’. More than 20% of the world’s oil passes through this route, which connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Heavy missile attacks around the region have raised concerns about disruption in oil supplies.
Impact of experts’ warnings on market sentiment
The warning issued by Britain’s second largest bank ‘Barclays’ further increased the fear of the market. The bank has estimated in its report released on Saturday that in view of the deteriorating security situation in the Middle East, Brent crude may touch the level of $ 100 per barrel.
Sectoral Outlook
Index condition: Sensex fell 2,743 points to 78,543 and Nifty fell 519 points to 24,659, breaking the important support level of 25,000.
Loss of wealth: More than Rs 7.8 lakh crore was wiped out of the total market cap of all the companies listed on BSE as soon as the market opened.
Major losers: Shares of Indigo, Larsen & Toubro, Eternal, Adani Ports and Asian Paints fell 2-4% on Sensex. On the sectoral front, Nifty Realty index fell the most (about 2%), while Auto, IT, PSU Bank and Oil & Gas indices fell more than 1%.
Defense bullish: Investor interest in defense stocks increased due to rising geopolitical tensions, due to which Bharat Electronics (BEL) shares remained in the green with a gain of over 1%.
global market situation
This crisis in West Asia has increased the global volatility and inflation risk. While heavy selling is being seen in equity markets, gold has surged by Rs 6,000 per 10 grams and silver by Rs 10,400 per kg due to investors rushing towards safe havens. In view of the current global uncertainty, investors need to adopt a cautious approach in the market.
index current price change percentage change
HSI (Hong Kong) 26,165.88 -464.66 -1.74
NIFTY 50 (India) 25,178.65
NZX 50 (New Zealand) 13,617.45 -105.52 -0.77
MALAYSIA (Malaysia) 1,698.48 -18.13 -1.06
TAIWAN (Taiwan) 35,255.76 -158.73 -0.45
NIKKEI (Japan) 57,947.22 -903.05 -1.53
ASX 200 (Australia) 9,173.80 -24.8 -0.27
SHANGHAI (CHINA) 4,163.01 0.127
SHENZHEN (CHINA) 14,386.05 -109.04 -0.75
KOSPI (South Korea) 6,244.13 -63.14 -1
SETI (Thailand) 1,496.78 -31.48 -2.06
STI (Singapore) 4,905.59 -89.48 -1.79
SGX-CNBC CHINA GROWTH 1,746.80 -24.07 -1.36
