Sensex, Nifty dip close to 3% over surging crude oil prices amid US-Iran war

The Indian equity markets plummeted close to 3% in early trade on Monday tracking global weakness, rising crude oil prices amid escalating tensions in the Middle East. 

As of 9.22 AM, the Sensex lost 2,333 points, or 2.96%, to reach 76,585 and Nifty dipped 686 points, or 2.81% to reach 23,764.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 slipped 3.28%, and the Nifty Smallcap 100 dipped 3.37%.

All sectoral indices traded in the red with Nifty PSU bank leading losses down 5.32%. Nifty private bank, auto and metal were among the top losers down 3.41%, 3.98% and 3.39% respectively.

In the near term, the market is likely to remain volatile and range-bound with a downside bias unless geopolitical tensions ease, crude oil prices stabilise, or supportive macroeconomic triggers emerge to restore investor confidence, analysts said.

Near-term resistance for Nifty is placed in the 24,600–24,700 range, while a stronger resistance zone remains near 24,900–25,000.

Resistance for Bank Nifty is seen in the 558,300–58,500 range, while the key psychological level of 59,000 remains a major barrier, market participants said.

Crude oil prices almost touched $110 per barrel as the conflict involving Iran disrupted energy flows through the Strait of Hormuz and rattled global markets.

US President Donald Trump defended the spike. He said higher oil prices were a temporary cost tied to confronting Iran’s nuclear threat.

In Asian markets, China's Shanghai index eased 1.09%, and Shenzhen plummeted 2.06%, Japan's Nikkei declined 6.98%, and Hong Kong's Hang Seng Index dropped 2.51%. South Korea's Kospi lost 7.36%.

The US markets ended in red overnight as Nasdaq lost 1.59%. The S&P 500 dipped 1.33%, and the Dow Jones declined 0.95%.

On March 6, foreign institutional investors (FIIs) net sold equities worth ₹6,030 crore, while domestic institutional investors (DIIs) were net buyers of equities worth ₹6,971 crore.

(This story was taken from syndicated feed and was only edited for style by Gujarat Samachar Digital team)