Sensex, Nifty Slip Over 2% As West Asia Tensions Fuel Market Volatility

Domestic equity benchmarks, including Sensex and Nifty, opened the week sharply lower on Monday, with investors reacting to rising tensions in West Asia and surging crude oil prices.

The Sensex fell 1,555.62 points, or 2.08 per cent, to 72,977.34 in early trade. Meanwhile, the Nifty declined 479.95 points, or 2.07 per cent, to 22,634.55.

Sector-wise, metal, PSU bank, and auto indices led the decline, falling up to 3 per cent. Stocks such as Tata Steel, Hindalco Industries, HDFC Bank, JSW Steel, Bajaj Finance, and Shriram Finance were among the top laggards, with all sectors in negative territory.

Investors turned risk-averse amid no signs of de-escalation in the ongoing US-Israel-Iran conflict, now in its fourth week.

Oil prices surged, with Brent crude trading near $113 per barrel and US WTI crude rising over 3 per cent, adding to global inflationary pressures. Concerns over restricted access at the Strait of Hormuz further heightened investor anxiety.

Analysts noted that markets have entered a risk-off phase, with persistent foreign institutional investor (FII) selling and weak global cues weighing on sentiment.

FIIs sold equities worth ₹5,518 crore in the previous session, while domestic investors provided limited support.

Experts suggest that the Nifty faces immediate support around 22,800, with resistance between 23,400 and 23,600. Investors are advised to exercise caution and accumulate fundamentally strong stocks on declines.

Asian markets also suffered sharp losses. Japan’s Nikkei 225 fell nearly 5 per cent, Hong Kong’s Hang Seng dropped 3.5 per cent, and South Korea’s Kospi declined almost 6 per cent. US markets closed lower in the previous session, reinforcing a global risk-off sentiment.

Also Read: Middle East Tensions: IndiGo, Air India Continue Flights; Issue Travel Advisory