Indian Markets Plunge: Sensex Drops 582 Points, Nifty Below 24,000

At the time of filing this report, Brent Crude Oil financial futures dropped 1.22 per cent to trade at USD 116.59.

In Asia, the Jakarta Composite and Hang Seng saw notable drops of 2.08 per cent and 1.39 per cent respectively, while the Nikkei 225 fell by 1.29 per cent (-762.46 points), reflecting a cautious sentiment in the region, despite minor gains in the Straits Times (+1.06%) and Shanghai Composite (+0.11%).

US Markets are experiencing mixed results but lean toward the negative. Dow Jones Futures are down 0.18 per cent and the S&P 500 has dipped slightly by 0.04 per cent. The Nasdaq provides a small bright spot with a marginal increase of 0.04 per cent.

Earlier at the opening bell, the domestic stock markets opened under heavy selling pressure as Brent crude oil futures surged above USD 120 per barrel, denting investor sentiment amid continued uncertainty in West Asia.

The Nifty 50 index opened at 23,899.20, falling 278.45 points or 1.15 per cent, while the BSE Sensex opened at 76,582.24, down 914.12 points or 1.18 per cent.

Market participants said the sharp rise in crude prices and lack of clarity on the geopolitical situation have led to heightened volatility and risk aversion.

Ajay Bagga, Banking and market expert, told ANI that domestic markets are facing significant pressure, with early indications such as GIFT Nifty pointing to a gap-down opening of over 140 points.

He noted that as a major oil importer, India is witnessing pressure on its currency and bond markets, with the rupee weakening to near Rs 95 per US dollar and bond yields rising.

He said, "Today marks the monthly expiry for BSE contracts, which is expected to amplify the downward volatility triggered by the crude spike and FII outflows. The market is currently in a 'wait-and-watch' mode regarding whether the U.S. will move beyond a blockade to direct military action, which remains the primary tail-risk for the coming weeks. With a long weekend coming up expect sharp moves and paring of positions in Indian markets".

The geopolitical situation has intensified as US President Donald Trump stated that the naval blockade of the Strait of Hormuz will continue until Iran agrees to a new nuclear and security deal. The US has rejected Iran's proposal to reopen the Strait before negotiations, increasing fears of prolonged supply disruptions.

In the commodities market, Brent crude futures surged to as high as USD 121 per barrel during early trade, a level not seen in last four years. July futures opened at around USD 111 per barrel. Meanwhile, WTI crude was also trading significantly higher, near USD 108 per barrel.

- ANI