- Domestic equities fell Monday, led by metal, realty, defence, and auto sectors losses
- Nifty dropped 1.22% to 23,081.40; Sensex fell 1.12% to 73,397 by early trade
- Global selloff followed Iran missile strikes on Israel, spiking geopolitical tensions
Domestic equities are trading lower on Monday, tracking weak global cues, and lingering geopolitical tensions. Benchmark indices are in the negative territory, with selling pressure visible across sectors.
At 9:17 am, Nifty was down 1.22% at 23,081.40, and Sensex was down 1.12% at 73,397.
The pressure comes on the back of gaining crude prices, and volatile IT stocks.
All sectors were trading in the red, with losses led by Metal, which remained 1.78% down during early trade, followed by Realty, Defence, and Auto.
The broader market is also facing pressure with the Nifty Smallcap 250 falling almost 0.85%, and the Nifty Midcap 150 dropping about 0.96%.
Here's three reasons why markets are crashing on Monday:
IT Stocks Volatility
Major indices across Asian markets and US stock futures dropped sharply on Monday, June 8, after Iran reportedly fired missiles at Israel, compromising a fragile ceasefire and heightened uncertainty following last week's tech selloff. Asia-Pacific markets opened lower, with South Korean equities leading losses as the benchmark Kospi crashing nearly 9%, triggering circuit breaker which led to a halt in trading. Japan's Nikkei 225 dropped 3.4%. Australia markets are closed for the day.
Hong Kong Hang Seng index futures last traded at 24,544, lower than the index's Friday close of 24,961.95. In US markets, futures tied to the Dow Jones Industrial Average lost 80 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures each lost 0.2% as well. The selloff across global indices was led by tech and AI-driven losses following Nasdaq's crash on Friday.
Wall Street's historic weekly run came to a halt, with stocks hit by a tech selloff and higher bond yields after a solid jobs report added to bets the Federal Reserve's next interest-rate move will be a hike. That repricing of the US Fed outlook coincided with a swoon in the artificial-intelligence shares that had led a surge from this year's lows. Nasdaq 100 sank 5%, the most since April 2025.
Gold Prices
The yellow metal rate dropped on MCX today, June 8 amid geopolitical uncertainties in the Middle East. At 9:05 am on Monday, the MCX gold August futures contract fell 1.27% to Rs 1,53,695 per 10 grams, while the MCX silver July futures dropped 2.35% to Rs 2,42,763 per kg.
In the global market. gold prices continued to weaken after Israel announced military strikes against targets in Iran, raising concerns that a fragile ceasefire in the Middle East could unravel. The precious metal dropped by as much as 0.7%, trading close to $4,300 per ounce. The decline follows a nearly 5% fall last week, which occurred during the most significant escalation of regional tensions since the ceasefire reached in early April.
Geopolical Tensions
US President Donald Trump has asked Israel Prime Minister Benjamin Netanyahu not to retaliate to Iran's latest barrage of missiles, saying it would jeopardise the ongoing negotiations for a peace deal to end the three-month long conflict. US media outlet Axios reported that after Iran launched missiles at Israel on Sunday, Trump spoke to Netanyahu in a bid to prevent fresh tensions between the two nations from derailing the peace deal.
Trump also asked Iran to return to the negotiating table. He reiterated that Washington is close to reaching an agreement and warned that escalating tensions could derail the effort. Trump said Netanyahu would likely have to accept whatever agreement the US ultimately reaches with Iran.
Iran launched missiles at Israel in the first such escalation since a fragile ceasefire took effect in early April, raising the possibility of a return to heavy fighting and complicating mediation efforts to end the war. Iran's state broadcaster confirmed the launches, and Iran closed its western airspace to brace for a possible response.
Brent crude jumped as much as 3.6% to $96.47 a barrel, while US benchmark West Texas Intermediate briefly approached $94 before paring some gains. The rally added to volatility in energy markets that have been driven largely by geopolitical developments rather than underlying supply-demand fundamentals.
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