- Indian markets fell over 1% amid renewed Middle East geopolitical tensions on Thursday morning
- Nifty traded near April 2025 lows at 23,606 and Sensex dropped to 76,067 in early trade
- Oil and Energy sectors gained, while Auto sector led losses with a decline over 3%
Indian markets are seeing some pressure again in Thursday's trade after a brief period of recovery the past two days, amid renewed geopolitical tensions in the Middle East. As of 10:15 am, Nifty is trading around its April 2025 dip, 1.09% lower at 23,606, and Sensex is trading 1.04% lower at 76,067.
Barring Energy, and Oil & Gas, all sectors are trading in the red, with Auto leading the losses by over 3%.
Pain is also witnessed in the broader markets, with Nifty Midcap 150 trading with cuts of 1.29%, and the Smallcap 250 index is trading with cuts of 1.42%.
Here are three reasons why markets are falling in trade today.
Middle East Tensions
Thursday marked the 13th day of the US, Israel-Iran conflict. US President Donald Trump claimed victory in the Iran war, stating "we won" during a speech in Kentucky, despite not providing clear evidence to support his claim. He mentioned the conflict was over within the first hour, but also said the need to "finish the job".
The war has killed at least 1,255 people in Iran, at least 570 in Lebanon and 12 in Israel, according to officials in those countries. The Pentagon said that about 140 US service members have been wounded, eight of them severely, and seven killed.
Get the latest updates on the US, Israel-Iran war here.
Crude Prices
Brent crude has surged 10%, back towards the $100‑a‑barrel mark after two tankers were struck in Iraqi waters, highlighting the growing vulnerability of energy infrastructure across the Middle East and overshadowing the International Energy Agency's record release of emergency reserves.
Iraq's state oil marketer, the State Organization for Marketing of Oil (SOMO), confirmed that two vessels — the Marshall Islands-flagged Safesea Vishnu and the Malta-flagged Zefyros — were targeted while in the loading zone near Iraqi ports.
Weak Global Cues
Asia-Pacific markets are down as investors grappled with volatile oil prices and escalating tensions in the Middle East, even after the US and its allies announced an unprecedented emergency release of crude reserves to calm energy markets. U.S. equity futures traded in negative territory, reflecting a cautious tone across global risk assets.
Technical indicators continue to point toward a bearish setup, reinforcing the weak sentiment. Foreign institutional investors extended their selling streak in the cash market for the tenth consecutive session, adding to the pressure.
FII short positions also inched higher, rising to 88% from 87% previously, signalling persistent downside expectations. Meanwhile, the rupee continued to weaken, adding currency‑market stress to an already risk‑off environment.
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