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Indian Markets Plunge 1% as US Hormuz Deadline Sparks Global Jitters

Indian equity benchmarks Sensex and Nifty plunged over 1% in early trade due to heightened geopolitical tensions surrounding the Strait of Hormuz. The sell-off was broad-based, with financial, auto, real estate, and pharma indices declining up to 2%. The uncertainty was fueled by rising oil prices, with Brent crude futures jumping nearly 1.7%, adding to inflationary concerns. While analysts note a positive undertone, they advise caution, suggesting traders wait for price confirmation near key resistance levels.

Key Points: Sensex, Nifty Fall 1% on US Strait of Hormuz Deadline

  • Sensex fell 824 pts
  • Nifty dropped 249 pts
  • Brent crude surged to $111.63
  • FIIs sold ₹8,167 crore
  • Sector-wide selling pressure
2 min read

Sensex, Nifty slide 1 pc as Hormuz deadline by US rattles markets

Indian stock markets tumbled over 1% amid fears over the West Asia conflict and a US deadline on the Strait of Hormuz, triggering broad-based selling.

"The undertone remains positive, but sustainability depends on strength above key resistance zones. - Market Analysts"

Mumbai, April 7

The Indian stock markets on Tuesday witnessed sharp losses in early trade, with equity benchmarks declining 1 per cent each amid uncertainty over a possible resolution to the West Asia conflict, ahead of a deadline set by US President Donald Trump to reopen the Strait of Hormuz.

Sensex opened 372 points or 0.50 per cent lower at 73,734, while Nifty began the session at 22,838.

Later in early trade, the 30-scrip basket declined as much as 1.11 per cent or 824.44 points, hitting an intraday low of 73,282, while the 50-share index plummeted by 1 per cent or 248.95 points to 22,719.30, an intraday low amid selling pressure in all sectors.

Sector-wise, financial, auto, real estate and pharma indices declined up to 2 per cent. Meanwhile, Interglobe Aviation (IndiGo), Eternal, Max Healthcare, M&M, Eicher Motors, Apollo Hospitals and Dr Reddy's were among the top laggards.

According to analysts, recent price action indicates improving sentiment, backed by buying at lower levels.

"The undertone remains positive, but sustainability depends on strength above key resistance zones. Traders should stay selective and wait for price confirmation near crucial levels before taking fresh positions," the analysts advised.

Meanwhile, the oil commodity market is in bullish territory near its highs, with Brent crude futures jumping as much as 1.69 per cent to $111.63 per barrel, and US WTI crude trading at $115.64, an increase of about 3 per cent.

Moreover, Asian stocks showed mixed performance, with key indices, the Nikkei, Hang Seng, and KOSPI, trading flat, down 0.71 per cent, and up 0.40 per cent, respectively.

In the US, Wall Street closed mildly positive, with the S&P 500 closing at 6,611.83, up 29.14 points or 0.44 per cent, while the tech-heavy Nasdaq settled at 21,996.34, an increase of 117.16 points or 0.54 per cent.

FIIs remained net sellers in India on Monday and offloaded Rs 8,167 crore, while DIIs provided support by purchasing equities worth Rs 8,000 crore.

- IANS

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Reader Comments

P
Priya S
Every time oil prices spike, our markets get a heart attack. It directly impacts inflation, our current account deficit, and corporate profits. The government really needs to fast-track renewable energy and electric vehicles to reduce this oil dependency. 🇮🇳
R
Rohit P
Good time to buy the dip for long-term investors! As the analysts said, sentiment is improving and DIIs are providing support. Sectors like pharma and autos falling 2% might present opportunities. Stay calm and follow a systematic investment plan.
A
Aman W
The real pain is for the common man. High oil prices mean more expensive petrol, diesel, and consequently, everything else gets costlier. Market crashes affect mutual funds and retirement savings of millions. Hope things stabilize soon.
S
Sarah B
Watching from the US, it's interesting to see how interconnected global markets are. Our policies clearly have ripple effects. While the Strait of Hormuz is a critical chokepoint, I hope for a peaceful resolution that doesn't destabilize emerging economies like India.
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Karthik V
Mixed feelings. On one hand, it's a short-term panic. On the other, it exposes our systemic weakness. We talk about being a $5 trillion economy, but a single geopolitical event can cause this much damage? Need more resilient economic policies, ji.

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