- India's benchmark indices fell sharply amid ongoing Middle East crisis and global selloff
- Nifty 50 dropped 312 points to 24,865, Sensex declined 1,048 points to 80,238 on Monday
- Broader markets saw larger losses with midcap and smallcap indices down over 1.7% each
India's benchmark equity indices plunged on Monday amid a global selloff triggered by the crisis in the Middle East now in its third day with no signs of de-escalation. The Nifty 50 ended 312 points or 1.24% lower at 24,865 and the BSE Sensex settled 1,048 points down at 80,238. Intraday, both indices fell over 2%.
Larsen & Toubro Ltd. and Reliance Industries Ltd. were the top draggers on the blue-chip Nifty index. InterGlobe Aviation Ltd. and L&T were the top percentage losers. The market capitalisation of the 50-stock index shed Rs 2.5 lakh crore.
Broader markets performed worse, with the Nifty Midcap 150 and Nifty Smallcap 250 shedding 1.7% and 1.9%, respectively. Twelve out of 15 sectoral indices on the NSE fell, led be auto and energy stocks. Defence, metal and pharma counters ended higher.
The Nifty and Sensex have closed more than 1% lower for eight sessions so far this year.
The rupee ended 50 paise lower at 91.475 against the dollar, tracking weakness among other emerging market peers. Besides foreign outflows from domestic equities, the local currency was weighed down by over a 10% jump in international crude oil prices and worries over India's trade disruptions with the Gulf.
The steep advance in oil prices is a direct headwind for consumption-linked inflation, corporate margins and the trade deficit, and markets have reacted accordingly with sharp selling pressure, said Harshal Dasani, business head at INVAsset PMS.
"In such an environment, uncertainty is the biggest enemy of markets — it raises risk premia, disrupts capital flows and creates a bias toward defensive positioning. Until the geopolitical dust settles and energy markets stabilise, India's markets are likely to remain on edge, with volatility elevated and risk appetite suppressed," he said.
Gold, a classic safe haven, climbed on heightened geopolitical uncertainty, reinforcing its traditional role as a hedge during periods of stress. Spot gold prices on the international market rose 2.5% tp $5,400.
Iran continued to aim projectiles at Gulf countries in retaliation to US and Israeli strikes. The US and Israel continued their military operations against the Islamic Republic.
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