Indian Markets Slide In Early Trade As Middle East Crisis Unfolds

Indian stock markets opened weak on Monday, 23 June, in response to rising geopolitical tensions in the Middle East, particularly after US airstrikes on Iranian nuclear facilities.

The bearish sentiment was reflected across key indices, as investors turned cautious amid concerns of potential escalation.

At 9:30 AM, the BSE Sensex had dropped by 677.10 points, or 0.82%, to 81,731.07, while the NSE Nifty fell 204.6 points, or 0.81%, to 24,907.75.

The broader market indices also mirrored the downtrend, with Nifty Bank declining by 387.75 points to 55,865.10.

The Nifty Midcap 100 and Smallcap 100 indices were down 0.38% and 0.25%, respectively.

Analysts noted that while the airstrikes have intensified tensions, the market has, for now, priced in a measured response.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed, “The market is assessing the limits of Iran’s possible retaliation. A significant attack on US assets could provoke a severe response and worsen the crisis.”

He added that the Strait of Hormuz remains a crucial factor, as its closure would hurt not only Iran but also China, a key ally.

Given this dynamic, the broader outlook still supports a ‘buy on dips’ strategy for investors.

Sectoral trends & stock movements

Heavy selling was witnessed in the IT and FMCG segments. Infosys, HCL Technologies, Hindustan Unilever, TCS, Asian Paints, and Power Grid featured among the top losers.

Reliance and ITC also saw a downward movement.

In contrast, Bharat Electronics Limited (BEL), Bharti Airtel, and Trent managed to stay in the green, offering some respite in an otherwise weak session.

Foreign institutional investors (FIIs) continued their buying streak, purchasing equities worth ₹7,940.70 crore on 20 June.

However, domestic institutional investors (DIIs) sold stocks worth ₹3,049.88 crore on the same day, creating mixed signals in the market.

Devarsh Vakil, Head of Prime Research at HDFC Securities, noted, “Markets are likely to open lower but may attempt a recovery. Immediate resistance is seen at 25,222, while support lies near the 24,800 level.”

Asian markets showed mixed trends, with Bangkok, Tokyo, Seoul, Hong Kong, and Jakarta trading in the red.

China remained the only major Asian market in positive territory.

US indices had a muted end last Friday, with the Dow Jones closing slightly higher, while the S&P 500 and Nasdaq finished in the red.

Global uncertainty keeps Indian markets volatile, and geopolitical risks dominate short-term sentiment.

Market experts advise investors to stay cautious and track developments closely.

Also Read: US Airstrikes On Iran Spark Fears Of Oil Price Surge & Economic Ripple Effects