The Indian benchmark indices fell on Monday, mirroring the global concerns over the escalating tensions in the Middle East.
At the opening bell, Sensex and Nifty witnessed significant declines, reflecting the apprehension among investors in the face of geopolitical uncertainties.
The Sensex dropped 887.82 points, or 1.20%, to 73,357.08, while the Nifty plunged 181.75 points, or 0.81%, to 22,337.65.
The notable gainers included Hindalco, ONGC, TCS, Nestle India, and HCL Technologies, while BPCL, Coal India, Tata Consumer Products, Tata Motors, and Adani Enterprises were among the top losers.
Across Asia, equities faced downward pressure, reaching a six-week low, amid concerns surrounding the Middle East situation, disappointing bank earnings, and expectations of prolonged higher interest rates by the US Federal Reserve.
Varun Aggarwal, the founder and managing director of Profit Idea, commented on the market dynamics, stating, “Although global markets demonstrated some stability following an unprecedented attack on Israel, tensions remained palpable. Oil prices experienced slight relief amid speculation of contained conflict, with Brent crude stabilizing around USD 90 a barrel. Conversely, aluminum and nickel prices surged after the imposition of new sanctions on Russian supplies by the US and UK.”
Investors are navigating through uncertainties, such as persistent inflation and interest rate hikes, with the Middle East crisis adding a layer of volatility. Expectations of oil prices surpassing USD 100 per barrel loom, with potential flight to safe-haven assets like Treasuries and gold, alongside further stock market declines.
(Inputs from ANI)