Stock market opens in red amid escalating US-Iran war signals, Sensex and Nifty fall 2%

Mumbai (The Uttam Hindu): After a strong rally in the previous trading session, the Indian stock market opened sharply lower on Thursday amid signs of intensifying tensions in West Asia. Both the BSE Sensex and Nifty 50 declined by more than 2% in early trade.

The 30-share BSE Sensex opened 872.27 points or 1.19% lower at 72,262.05, while the Nifty 50 fell 296 points or 1.31% to open at 22,383.40. The Bank Nifty index also dropped 823 points or 1.60% to 50,625.65.

At around 9:29 AM, the Sensex was trading down 1.90% (1,388.11 points) at 71,746.21, while the Nifty 50 declined 1.94% (439.40 points) to 22,240. All sectoral indices were trading in the red during this period.

In the broader markets, the Nifty Midcap 100 index fell 2.77%, while the Nifty Smallcap 100 index declined 2.82%.

Sector-wise, all indices registered losses. Nifty PSU Bank, Realty, Pharma, Auto, Metals, and Private Bank indices fell more than 2%, while Nifty FMCG declined 1.46% and Nifty IT saw the smallest drop of 0.38%. All Nifty 50 stocks were trading in negative territory, with major declines seen in Sun Pharma, InterGlobe Aviation, Eternal, Larsen & Toubro, Asian Paints, Shriram Finance, Max Healthcare, SBI, and M&M.

The sharp fall in the market followed statements by Donald Trump indicating a potential escalation in military action against Iran within the next two to three weeks. This dampened hopes of an early ceasefire in the region. His mixed signals about ongoing negotiations and possible escalation added to market uncertainty.

Following Trump’s remarks, crude oil prices surged. Brent crude rose over 4% to cross $105 per barrel, while West Texas Intermediate (WTI) climbed more than 3% to exceed $103 per barrel.

Market experts suggest that volatility is likely to persist, with investors closely watching crude oil movements, foreign institutional investor (FII) activity, and further developments in West Asia.