The Indian equity markets started the week on a downward trend on Monday, in response to a general risk-off sentiment in global markets due to tensions involving the US, Israel, and Iran. By 9:28 am, Sensex dropped 891 points to 80,395, and Nifty fell 268 points to 24,909. The broader-cap indices mirrored this decline, with Nifty Midcap 100 down by 1.14% and Nifty Smallcap 100 by 1.35%.
All sectoral indices were in the red, with Nifty realty, oil and gas, and auto sectors leading the losses at 2.19%, 1.81%, and 1.35% respectively. Analysts noted that the heightened uncertainty in the Middle East is expected to keep risk appetite low, with aviation stocks likely to face pressure due to flight suspensions in key UAE routes. The upcoming weekly Nifty expiry before the Holi market holiday could add to market volatility.
Market analysts observed a bearish trend with the formation of a fourth consecutive red candle in Nifty charts and a recent close below the 200-day EMA, indicating a weakening broader trend. They highlighted technical levels, citing resistance at 25,300–25,350 and immediate support at 25,000–25,050. Crude oil prices surged over 7% on fears of a US-Iran conflict leading to significant regional supply disruptions.
In Asian markets, airline stocks faced losses due to airspace closures in the Middle East and airport disruptions. China’s Shanghai index remained flat, Shenzhen dipped 0.75%, Japan’s Nikkei fell 1.5%, Hong Kong’s Hang Seng Index plummeted 1.68%, and South Korea’s Kospi lost 1%. The US markets closed in the red, with Nasdaq down 0.92%, S&P 500 losing 0.43%, and Dow Jones declining by 1.05%.
