Sensex plunges 1,836 points, Nifty slides 2.6% as Middle East tensions rattle markets
MUMBAI, India — Indian stock markets closed sharply lower Monday, with benchmark indices tumbling as escalating tensions between the United States and Iran triggered broad-based selling and heightened investor anxiety.
The BSE Sensex fell 1,836.57 points, or 2.46 percent, to close at 72,696.39, while the NSE Nifty dropped 601.85 points, or 2.60 percent, to settle at 22,512.65.
Market sentiment weakened amid rising geopolitical uncertainty, which drove a surge in volatility. The India VIX, often referred to as the fear gauge, jumped more than 17 percent to close at 26.73.
Analysts said the Nifty’s technical outlook remains firmly bearish, with a pattern of lower highs and lower lows indicating sustained downward momentum.
“On the upside, the 22,650–22,700 range now acts as immediate resistance, while the 22,900–23,000 zone stands as a strong supply area aligned with previous breakdown levels,” an analyst said.
Broader markets underperformed the headline indices. The Nifty MidCap index declined 3.69 percent, while the Nifty SmallCap index dropped 4.16 percent, reflecting deeper losses across smaller stocks.
Sector-wise, construction-related stocks led the decline, with the Nifty Construction Durable index falling more than 5 percent. Realty and metal stocks also saw sharp losses, while information technology stocks showed relative resilience and recorded comparatively smaller declines.
The sell-off coincided with a spike in global oil prices as tensions in the Middle East intensified. Brent crude rose 2.37 percent to $108.73 per barrel after U.S. President Donald Trump warned of severe consequences if Iran failed to reopen the Strait of Hormuz within 48 hours.
Iran responded with threats targeting energy infrastructure in the region, further escalating concerns.
Prime Minister Narendra Modi, addressing the Lok Sabha, said the government is taking continuous steps to ensure uninterrupted energy supplies through the Strait of Hormuz, a critical route for global oil shipments.
The developments have raised fears of potential disruptions to energy supplies and rising inflation, prompting investors to adopt a cautious stance and driving a sharp decline in equities. (Source: IANS)
