Indian markets fall over 1% as West Asia tensions rattle investor sentiment

Indian equity benchmarks opened sharply lower on Monday, with both the BSE Sensex and Nifty 50 dropping more than 1 per cent as escalating tensions in West Asia continued to weigh on global investor sentiment.

The Sensex fell over 1,000 points at the opening bell to around 72,565, marking a decline of roughly 1.38 per cent. Meanwhile, the Nifty slipped by about 267 points to begin the session near 22,549.

Selling pressure was broad-based across sectors, with PSU banks and chemical stocks among the hardest hit, registering losses of 3–4 per cent. Realty, auto and financial services stocks also declined significantly, while even traditionally defensive sectors such as FMCG, IT and pharmaceuticals were not immune, falling by up to 2 per cent.

The benchmarks have now dropped close to 10 per cent since late February, when the conflict involving Iran, Israel and the United States intensified, triggering heightened volatility in global markets.

The latest bout of weakness follows reports of fresh hostilities in the region, including strikes on industrial infrastructure, which have amplified concerns over geopolitical stability and energy supply disruptions.

Market analysts pointed to a bearish technical outlook, noting that recent price patterns indicate persistent weakness and negative sentiment. Key support for the Nifty is seen in the 22,450–22,500 range, while resistance is likely around 22,950–23,000.

Experts have urged investors to remain cautious, recommending a disciplined approach focused on fundamentally strong stocks during corrections rather than chasing short-term gains. They added that fresh long positions may be better considered only if the Nifty sustains a move above the 24,000 level, signalling a potential improvement in market sentiment.

With geopolitical developments continuing to dominate market direction, analysts also advised against taking leveraged overnight positions in the current environment.

Oil prices surged amid the uncertainty, adding further pressure on equities. Brent crude futures jumped more than 3 per cent to trade near $116 per barrel, approaching their 52-week highs, while US WTI crude also rose sharply to above $103 per barrel.

Global markets mirrored the cautious mood. In the United States, the S&P 500 ended the previous session down 1.67 per cent, while the Nasdaq Composite fell nearly 2 per cent. Across Asia, Japan’s Nikkei dropped close to 4 per cent, while Hong Kong’s Hang Seng and South Korea’s Kospi also closed lower, reflecting widespread risk aversion among investors.

With IANS inputs