CHENNAI: Indian markets opened deep in the red on fresh geopolitical nerves and a crude-driven cost-push inflation outlook. With elevated risk aversion and economic uncertainty, investors are steering into safe assets, while traditional support levels are being tested.
Sensex slumped 645 points to 81,762.8 or 0.78% in early trade (9:20 AM IST) Nifty 50 dropped 189 points to 24,923.3 or 0.75%.
The investor sentiment was weighed down by the US airstrike on three Iranian nuclear sites over the weekend (Operation Midnight Hammer), heightening Middle East tensions. Asia ex‑Japan markets fell over 1% and crude oil hit five-month highs, intensifying concerns over inflation and global growth.
All 13 major Nifty sectors were in the red, while mid‑cap and small‑cap indices also declined ~0.6% each Investors rotated into safe havens—gold, USD, US Treasuries—while oil surged, stoking fears of rising inflation and dampened Fed rate-cut timelines
GIFT Nifty futures pointed to a 150 point gap-down in the opening.
Weekly inflows
Markets had rebounded about 1.6% last week—may be offset by fresh geopolitical jitters and cautious stance from foreign institutional investors
A sudden sell-off in Accenture also impacted global IT sector sentiment, spilling over to Indian IT names.
Analysts believe that the immediate resistance for Sensex is likely around 82,000, while support hovers near the 81,500–81,700 zone.
Nifty support sits near 24,900; resistance around 25,000–25,100. Crude prices (trading at approximately 5-month highs), the Rupee, FII flow, and further developments from Iran in the coming hours, will set the direction for remaining trade. Investors keep a close eye on oil volatility, FII flow status, and any response from Iran for the next directional cues.
