Indian equity benchmarks witnessed sharp selling pressure on Monday morning as rising geopolitical tensions between the United States and Iran rattled global markets and pushed crude oil prices higher. The benchmark indices opened significantly lower, reflecting cautious investor sentiment amid fears of escalating conflict in the Middle East.
The Nifty 50 declined 281.70 points or 1.19 per cent to trade at 23,361.80, while the BSE Sensex plunged 921.68 points or 1.23 per cent to 74,316.31 during early trade.
Broad-based selling was visible across sectors as investors turned risk-averse following weak global cues and concerns that higher crude oil prices could fuel inflationary pressures. Among the top laggards on the Nifty 50 were Power Grid Corporation of India, Tata Steel, and Titan Company, with metal, infrastructure, and consumer-focused stocks witnessing heavy selling pressure.
The weakness extended beyond frontline indices as broader markets also traded lower. The Nifty MidCap index slipped 1.04 per cent, while the Nifty SmallCap index declined 1.15 per cent, signalling widespread caution among investors.
Sectorally, the Nifty Realty, Nifty Auto, and Nifty Media indices emerged as the worst performers amid worries that rising fuel costs could impact consumer demand and corporate profitability. However, the Nifty IT index showed relative resilience and managed to outperform the broader market.
Investor sentiment weakened further after U.S. President Donald Trump warned Iran in a social media post, stating that time was “ticking fast” and cautioning that if Tehran failed to make a decision soon, “nothing will be left.” The remarks intensified fears of deeper geopolitical instability in the Middle East, leading to increased volatility in global equities and crude oil markets.
Market experts believe key support and resistance levels will remain crucial in the near term. According to Hitesh Tailor, Research Analyst at Choice Equity Broking Private Limited, Indian markets are expected to remain under pressure as global uncertainty and rising oil prices continue to impact sentiment.
“Indian equity markets are expected to open on a negative note, with Gift Nifty trading around 23,539, down by 169 points, indicating weak opening cues for domestic indices,” Tailor said.
He noted that the Nifty formed a bearish candlestick pattern in the previous session, indicating cautious sentiment and lack of strong bullish conviction at higher levels. Tailor added that the Relative Strength Index (RSI) stood at 45.13, reflecting weak momentum, while India VIX rose to 18.79, signalling increased uncertainty in the market.
According to derivatives data, strong call writing was seen around the 23,700–23,800 levels, suggesting resistance near those zones. Immediate support for the Nifty is placed around the 23,400–23,500 range, which traders are likely to watch closely in the upcoming sessions.