Indian benchmark indices opened sharply lower on Monday, with the BSE Sensex crashing 600 points to 79,968 and the NSE Nifty falling 173 points to 24,032 in early trading. The downturn was primarily attributed to an escalation of hostilities between the United States and Iran in the Middle East, which led to a surge in crude oil prices and heightened geopolitical uncertainty.
Investor wealth took a significant hit, with the market capitalization of BSE-listed firms decreasing by over Rs 2 lakh crore, falling to Rs 479.59 lakh crore from Rs 481.75 lakh crore recorded on Friday. The renewed conflict saw Tehran claim to have closed the strategically vital Strait of Hormuz, a critical choke point for global oil shipments, after US and Iranian forces reportedly exchanged heavy missile and drone strikes on Sunday.
Market Movers and Oil Price Impact
Among the top losers on the Sensex were IndiGo, Maruti, Tata Steel, and HDFC Bank, with shares declining by up to 2.19%. Conversely, a few stocks managed to post gains, including TCS, HCL Tech, NTPC, and PowerGrid, which rose up to 1.28%.
The geopolitical tensions immediately impacted global energy markets, with Brent crude prices climbing 4% to $79.11 per barrel. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, warned that a sustained rise in Brent crude above $90 could trigger a significant market correction. He also noted that foreign institutional investor (FII) inflows, observed in five of the last eight trading days, were providing some resilience to the Indian market, as FIIs diversified away from chip stocks towards more stable markets like India.
Nifty Support Levels and Outlook
Ponmudi R, CEO of Enrich Money, provided technical insights for the Nifty. He indicated that the 24,100 level, coinciding with the 100-day Exponential Moving Average (EMA), would serve as immediate support, followed by the psychological 24,000 mark. Sustaining above these levels is crucial for maintaining the current recovery structure. However, a decisive break below 24,000 could unleash further selling pressure, potentially pushing the index towards the 23,900–23,800 range. The near-term technical outlook remains cautiously positive, requiring a sustained move above the 24,300–24,400 resistance zone to confirm a broader recovery continuation.
This market decline comes after a strong performance in the previous session, where the 30-share BSE Sensex surged 827.57 points (1.08%) to settle at 77,569.39, and the NSE Nifty50 index gained 244.10 points (1.02%) to close at 24,206.90.