Nifty and Sensex have opened the week under pressure again, with overnight geopolitical tensions casting a shadow over any hopes of recovery with US and Iran again coming to a standstill in terms of negotiations. US President Donald Trump has issued a stark warning that “the clock is ticking” for Tehran, while Iranian officials signalled they are fully prepared to respond to any renewed military action. Iran responded defiantly, saying its armed forces are fully prepared to confront any new attacks by the US or its allies.
Nifty is trading with cuts of over 1% (around 250 points lower) at 23,405. Sensex, meanwhile, is also 1.06% lower (800 points lower) at 74,457, as of 9:20 am.
All sectors, barring IT, are trading in red, with Nifty Realty, leading the losses with cuts of over 2%, followed by Media, Auto, and PSU Bank.
The broader market is also facing pressure with the Nifty Smallcap 250 falling almost 1.5%, and the Nifty Midcap 150 dropping about 1.09%.
Here's three reasons why markets are crashing on Monday:
Trump Says 'Clock Is Ticking For Iran'
Tensions between the United States and Iran escalated sharply as US President Donald Trump issued a stark warning that “the clock is ticking” for Tehran, while Iranian officials signalled they are fully prepared to respond to any renewed military action. US President Donald Trump warned that time was running out for Iran to agree to Washington's terms, amid stalled peace negotiations and a fragile ceasefire.
Reports suggest Trump has been consulting with his national security team and allies, including Israeli Prime Minister Benjamin Netanyahu, on potential next steps, including possible military options if talks fail.
Iran responded defiantly, saying its armed forces are fully prepared to confront any new attacks by the US or its allies, Iranian News Agency reported. A senior Iranian Defence Ministry spokesperson said the country's forces are “fully prepared to confront any new potential attack,” reflecting a hardened stance amid rising threats.
Get the latest updates on the US-Iran conflict here.
Crude Prices At $110
Oil prices rose for a third straight session after US President Donald Trump renewed pressure on Iran to accept a deal that could bring an end to weeks of conflict and restore traffic through the Strait of Hormuz. Brent crude advanced above $110 a barrel after gaining nearly 8% last week, while West Texas Intermediate approached $107.
The latest move adds to an extraordinary rally that has seen oil prices surge more than 50% since the US and Israel launched strikes on Iran at the end of February.
Rupee At Record Low
The rupee breached the key 96-per-dollar mark during intraday trade on Friday, pressured by elevated crude oil prices, continued strength in the US dollar, and hawkish signals from US policymakers. The domestic currency later settled 21 paise lower at a record closing low of 95.97 against the greenback.
The rupee has emerged as Asia's weakest-performing currency in recent weeks as India sees rising import bill due to soaring energy costs.
The yield on the US 10-year Treasury climbed to 4.62%, while the 30-year yield rose above 5.14%.
ALSO READ: Rupee Hits Record Low Of Rs 96.20 Per US Dollar On Renewed US-Iran Tensions
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