Markets Fall as US-Iran Tensions Rattle Investors

Market sentiment turned cautious after US President Donald Trump issued a 48-hour ultimatum to Tehran to fully reopen the Strait of Hormuz, raising fears of an escalation in the conflict.

Reflecting the nervousness, the Nifty 50 index opened at 22,824.35, down 290.15 points or 1.26 per cent, while the BSE Sensex opened at 73,732.58, falling 800.38 points or 1.07 per cent.

Market experts said global uncertainty is pushing investors away from riskier assets.

Banking and market expert Ajay Bagga noted that the global financial landscape is experiencing extreme volatility as the US-Iran conflict enters a critical phase, with investors moving towards the safety of the US dollar and withdrawing from risk assets.

He added that US money market fund assets under management have crossed USD 8 trillion, indicating a strong flight to safety.

Bagga also highlighted that the immediate trigger for the market panic is the looming deadline set by the US President, warning Iran to reopen the Strait of Hormuz or face severe consequences.

In the commodities market, Brent crude hovered near USD 112 per barrel, while WTI stood at USD 98.50. Prices remained volatile as traders balanced concerns over supply disruptions with fears of a global demand slowdown.

Despite geopolitical tensions, precious metals declined, with gold slipping to USD 4,408 per ounce, down around 2 per cent. Analysts attributed this to margin calls, with investors selling gold to cover losses in equities.

Sectorally, selling pressure was broad-based across NSE indices. Nifty Auto fell over 2 per cent, Nifty FMCG declined 1.22 per cent, and Nifty PSU Bank was the worst performer, dropping 2.80 per cent. Nifty IT fell 1.56 per cent, Nifty Oil & Gas slipped 1.38 per cent, and Nifty Consumer Durables declined 1.84 per cent.

SEBI-registered analyst and Alphamojo Financial Services founder Sunil Gurjar said the index is hovering near key support levels, indicating market indecision. He noted that a fall below 22,770 could trigger further downside, while a breakout above 23,800 may lead to fresh upward momentum.

Global cues remained weak, with major Asian markets trading sharply lower. Japan’s Nikkei 225 dropped over 4 per cent, Singapore’s Straits Times fell 2.20 per cent, Hong Kong’s Hang Seng declined 3.41 per cent, Taiwan’s Weighted Index lost 2.65 per cent, and South Korea’s KOSPI plunged more than 6 per cent.

US markets had also ended lower on Friday, with the Dow Jones falling 0.96 per cent, the S&P 500 declining 1.51 per cent, and the Nasdaq dropping 2 per cent.