Indian stocks plunge amid Middle East tensions

Mumbai, April 15: Indian stock markets on Monday started the week on a weak note, with key indices tumbling amidst growing geopolitical tensions in the Middle East.

Image Source -Photo Credit: Reuters

73,468.70, a decline of 0.86%, while the Nifty50 index fell by 190 points, ending the day at 22,330, reflecting a loss of 0.84%.

This decline in Indian equities was in line with a broader sell-off in Asian markets, triggered by escalating military actions in the Middle East.

Investor sentiment was heavily impacted after Iran launched a retaliatory attack on Israel, stoking fears of a potential escalation into a wider regional conflict. This geopolitical unrest has made investors wary, causing a flight to safer assets.

Reflecting the bearish mood, the market capitalization of all listed companies on the Bombay Stock Exchange (BSE) plummeted by ₹5 lakh crore, settling at ₹394.68 lakh crore. Sector-wise, there were significant downturns noted across the board.

Nifty PSU Bank, Realty, and Media sectors were the hardest hit, each falling by over 2%. Other major sectors such as Nifty Auto, Financial, Metal, Pharma, and Oil & Gas also saw losses ranging between 1% and 2%.

In a similar trend, major Asian stock markets also witnessed declines. MSCI's broadest index of Asia-Pacific shares outside Japan dropped by 0.7%. Japan's Nikkei 225 suffered a more considerable loss, sliding over 1%. Additionally, Australia's S&P/ASX 200 index fell by 0.6%, and Hong Kong's Hang Seng Index decreased by 0.8%.

As the geopolitical situation continues to unfold, the volatility in global markets is expected to persist, with investors closely monitoring developments for further signs of instability that could impact global economic stability and market sentiment.