Indian markets tumbled sharply on Monday morning after US airstrikes targeted three Iranian nuclear sites, raising fresh alarms over the deepening Middle East crisis. The Sensex dropped more than 800 points, with Nifty sliding nearly 250, as global investors reacted to escalating geopolitical risks and potential disruptions in the global energy supply chain.
At 9:45 am, the Sensex stood at 81,560 and Nifty hovered at 24,859, reflecting investor anxiety as oil prices spiked and global cues turned negative. Infosys, HCL Tech, Hindustan Unilever, and TCS led the list of top losers, while Bharat Electronics Limited and Bharti Airtel offered rare gains in an otherwise weak session.
The sharp fall in Indian equities mirrored a broader global selloff. Asian markets from Tokyo to Hong Kong and Seoul were all deep in the red. US futures were also down by about 0.5%, underscoring concerns that the conflict could derail fragile economic recovery in several regions.
Oil prices surged by 2%, reaching their highest levels since January. The immediate concern lies with the Strait of Hormuz, a critical maritime chokepoint through which nearly 20 percent of global oil flows. Iran is reportedly weighing a closure of the strait, which could severely affect oil exports and send prices soaring further. The rupee also weakened, slipping 17 paise to 86.72 against the US dollar under the weight of rising crude and geopolitical uncertainty.
The US bombing campaign, carried out by bomber jets early Sunday, struck Fordow, Natanz, and Esfahan nuclear facilities in Iran. This followed Tehran’s refusal to resume nuclear talks unless Israel halted its military operations. Satellite images showed damage to the facilities, though intelligence reports suggest Iran may have relocated key nuclear material beforehand.
The international standoff over Iran’s nuclear program continues to intensify. Reports indicate Iran has enriched uranium up to 60 percent purity, dangerously close to weapons-grade levels. While Tehran insists its nuclear ambitions are peaceful, the US and Israel remain skeptical and resolute that Iran must not develop nuclear weapons.
Despite the market jitters, some analysts are urging caution over panic. Dr VK Vijayakumar of Geojit Investments believes the situation, while serious, may not lead to long-term instability. He noted that if the Strait of Hormuz were to be blocked, the brunt would fall more on Iran and its allies like China. He suggested that investors may still benefit from a “buy on dips” approach.
Devarsh Vakil of HDFC Securities noted a revised support level for Nifty at 24,800 points, signaling potential stability if the geopolitical flare-up does not intensify further.
As the world watches developments unfold in the Middle East, markets are expected to remain volatile. Rising oil prices, currency fluctuations, and investor nervousness could continue to shape market sentiment in the near term. For now, Indian markets remain vulnerable to further shocks if the crisis escalates or energy flows are disrupted more severely.