The Indian equity markets saw a sharp decline of close to 3% in early trade on Monday, following global trends and the surge in crude oil prices due to escalating tensions in the Middle East. The Sensex dropped by 2,333 points, or 2.96%, reaching 76,585, while the Nifty fell by 686 points, or 2.81%, to 23,764.
Major indices like the Nifty Midcap 100 and Nifty Smallcap 100 mirrored the benchmark indices’ performance, with declines of 3.28% and 3.37%, respectively. All sectoral indices were in the negative territory, with Nifty PSU bank leading the losses with a 5.32% drop, followed by Nifty private bank, auto, and metal sectors down by 3.41%, 3.98%, and 3.39%, respectively.
Market analysts anticipate continued volatility and a downside bias in the near term unless there are improvements in geopolitical tensions, stabilization of crude oil prices, or positive macroeconomic developments to boost investor confidence. The Nifty faces resistance levels around 24,600–24,700, with a stronger barrier near 24,900–25,000, while Bank Nifty’s resistance is expected in the 558,300–58,500 range, with a key hurdle at 59,000.
Crude oil prices surged to nearly $110 per barrel due to the Iran conflict disrupting energy supplies through the Strait of Hormuz, causing global market turmoil. US President Donald Trump attributed the spike to the temporary costs associated with addressing Iran’s nuclear threat. In Asian markets, various indices like China’s Shanghai and Shenzhen, Japan’s Nikkei, Hong Kong’s Hang Seng Index, and South Korea’s Kospi recorded significant declines.
The US markets also closed in the negative territory, with Nasdaq falling by 1.59%, the S&P 500 by 1.33%, and the Dow Jones by 0.95%. On March 6, foreign institutional investors (FIIs) were net sellers of equities worth Rs 6,030 crore, while domestic institutional investors (DIIs) bought equities worth Rs 6,971 crore.
