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

MUMBAI — The Indian equity markets plummeted close to 3 per cent 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 per cent, to reach 76,585 and Nifty dipped 686 points, or 2.81 per cent to reach 23,764.

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

All sectoral indices traded in the red with Nifty PSU bank leading losses down 5.32 per cent. Nifty private bank, auto and metal were among the top losers down 3.41 per cent, 3.98 per cent and 3.39 per cent 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 per cent, and Shenzhen plummeted 2.06 per cent, Japan's Nikkei declined 6.98 per cent, and Hong Kong's Hang Seng Index dropped 2.51 per cent. South Korea's Kospi lost 7.36 per cent.

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