Mumbai: Indian equity markets witnessed a sharp decline on Thursday following renewed geopolitical tensions after US President Donald Trump reinforced his aggressive stance on Iran.
The benchmark Nifty 50 slipped more than 400 points to hover around 22,300, while the BSE Sensex plunged over 1,300 points, falling close to 71,800 levels in early trade.
The downturn came alongside a surge in global crude oil prices, with Brent crude climbing above $105 per barrel amid fears of prolonged conflict in West Asia. Rising oil prices typically weigh on import-heavy economies like India, fuelling concerns over inflation and fiscal pressure.
Global cues also remained weak, as Dow Jones futures dropped more than 500 points, reflecting investor anxiety across international markets.
Market experts noted that multiple factors are influencing trading sentiment, including geopolitical uncertainty, fluctuating oil prices, and the start of quarterly earnings announcements by companies.
Technically, analysts highlighted that the 23,000 mark remains a crucial resistance level for the Nifty, while key support zones are being closely monitored amid increased volatility. Banking stocks also faced pressure, with the Nifty Bank index needing to hold critical levels to avoid further downside.
Currency markets are set to reopen after a mid-week holiday and are expected to react to recent policy signals from the Reserve Bank of India, adding another layer of movement to financial markets.
With global uncertainties rising and domestic triggers unfolding, investors are expected to remain cautious in the near term.
