Markets Open In Red: Sensex Plunges 1,474 Points At Open; Nifty Slips Below 22,250 Amid Trump’s Iran Warning
Sensex plunges 1,474 points at open as Trump’s Iran warning rattles sentiment despite global markets showing resilience.
India’s benchmark indices opened sharply lower on Thursday, with the BSE Sensex plunging 1,474 points in early trade, reflecting heightened investor anxiety over escalating geopolitical tensions in the Middle East. The Nifty 50 also witnessed a steep decline at the opening bell, as market participants reacted nervously to fresh remarks by Donald Trump, who warned that US forces would hit Iran “very hard” over the next two to three weeks.
Geopolitical Tensions Weigh On Sentiment
Investor confidence took a hit after Trump’s strong rhetoric signaled a potential intensification of the ongoing conflict involving Iran. Markets typically respond negatively to such uncertainties, as fears of disruption in global oil supply chains and broader economic instability rise. The sharp fall at the open suggests traders are bracing for volatility in the near term, particularly in sectors sensitive to global developments such as energy, metals, and banking.
Persistent selling by overseas investors further weighed on domestic equities. The benchmark BSE Sensex tumbled 1,433.72 points, or 1.96%, to 71,700.60, while the NSE Nifty dropped 445.70 points, or 1.97%, to 22,233.70 during morning trade.
All 30 Sensex constituents were in the red, with Sun Pharma, IndiGo, Adani Ports, Larsen & Toubro, Asian Paints, NTPC, SBI, Trent, Kotak Mahindra Bank, Axis Bank, and PowerGrid among the biggest losers. Market sentiment soured after President Trump remarked that the U.S. would take strong action against Iran within weeks, as per PTI.
Brent crude surged nearly 5% to $105 per barrel, while the U.S. 10-year Treasury yield firmed to 4.36%. This uptick pressured precious metals, with gold and silver prices edging lower, noted V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Data showed Foreign Institutional Investors (FIIs) sold shares worth ₹8,331.15 crore on Wednesday, whereas Domestic Institutional Investors (DIIs) purchased equities worth ₹7,171.80 crore.
Global Markets Offer Mixed Signals
Interestingly, the weak domestic start comes despite a relatively positive global backdrop. Several Asian markets traded higher during early hours, while Wall Street ended the previous session on a firm note, supported by gains in heavyweight stocks.
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