Global Markets Plunge Amid US-Iran Tensions

Global equity markets experienced significant downturns as escalating US-Iran tensions led investors to seek safer assets. Major indices, including Nifty 50 and Sensex, saw notable declines. Analysts highlighted increased demand for the dollar, while sectoral indices experienced broad-based selling pressure. Commodity prices also fluctuated amid geopolitical concerns.

Global equity markets opened the week with significant declines as heightened geopolitical tensions between the United States and Iran prompted investors to retreat to safer assets.

The downturn followed US President Donald Trump's 48-hour ultimatum to Tehran concerning the Strait of Hormuz, elevating fears of potential conflict escalation.

Nifty 50 and Sensex indices both faced substantial losses at the opening, reflecting a global trend of risk aversion. Experts pointed to growing uncertainty and volatility driving investors towards the dollar, while US money market funds reached a landmark USD 8 trillion.

In the commodities sector, oil prices remained volatile despite supply concerns following the ultimatum, with Brent and WTI crude prices fluctuating. Meanwhile, gold prices fell amid a margin call environment affecting equity losses, contrasting the usual trend in geopolitical crises.

Major sectoral indices recorded broad-based declines, with Nifty PSU Bank leading the downturn by falling 2.80 percent. Other sectors like Auto, FMCG, IT, and Consumer Durables also registered significant losses.

Market analyst Sunil Gurjar identified critical support levels and potential price movements for the Nifty index, emphasizing market indecision. Overseas, major Asian markets followed a similar negative pattern, reacting to uncertainty and selling pressures.

The bearish sentiment had extended from US markets, which saw significant drops in indices like the Dow Jones, S&P 500, and Nasdaq by the previous Friday's close.

(With inputs from agencies.)