Sensex, Nifty Tumble Over 2% as West Asia Tensions Rattle Global Markets

The stock markets had a rough start to the week on Monday. Both indices, the BSE Sensex and NSE Nifty 50, tumbled sharply in early morning trade, dragged down by rising oil prices and growing global tensions.

By 10:00 AM, the Sensex had plunged 1,679 points, 2.3% lower to 72,853, while the Nifty 50 slid by a similar 2.3% to 22,582. The sell-off was widespread, with nearly all sectors taking a hit.

The scale of the damage was stark as investors collectively lost around ₹9 lakh crore in wealth as the total value of companies listed on the BSE shrank sharply in a single session.

The rupee also had a weak start on Monday, opening 12 paise lower at 93.83 against the US dollar, and the slide didn't stop there. The currency went on to fall as much as 23 paise, touching 93.94 during early trade.

What's causing the panic?

The turmoil stems largely from the ongoing war in West Asia, now entering its fourth week with no end in sight. Markets across Asia also fell on Monday, as the conflict has pushed US bond yields to their highest levels in eight months, while oil prices have been swinging wildly.

Additionally, rising tensions between the US-Israel alliance and Iran over the Strait of Hormuz have put global markets on edge.

What experts are saying

Brokerage firm Geojit Investments warned that the Nifty could slide further to around 22,000 in the near term, with the first downward target at 22,560. A meaningful recovery, they said, would only begin if the index climbs back above 23,179.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed to a specific flashpoint. "Unfortunately, the war is escalating   with President Trump giving ultimatum to Iran to open the Strait of Hormuz in 48 hours. Iranian president’s response that “ the Strait of Hormuz is open to all except those who violate our soil” has prevented panic in the oil market. However, the uncertainty is huge and markets will be waiting and watching the outcome," he said.

Vijayakumar noted that the global uncertainty has hit nearly every asset class, not just stocks, but also bonds and even traditionally "safe" investments like gold and silver. In fact, he mentioned that gold has fallen even more sharply than equities, which is unusual.

His advice to investors is not to panic. "If history is any guide, investors should keep cool," he said. He also flagged a silver lining, the sharp fall in the value of the Indian rupee could actually benefit export-oriented sectors like pharmaceuticals, automobiles, and auto components. India's battered IT sector may also see a bounce back, he added.