Amid the ongoing escalation of war between Iran and Israel, the Indian markets are bracing for potential fallout on Monday. Iran's retaliation against attacks in the Middle East, especially on US bases, has triggered widespread uncertainty in global markets.
The risk of conflict spillover looms large—not only between Iran and Israel but also involving Western countries supporting Israel—with Iran threatening to shut down the Strait of Hormuz indefinitely, disrupting global trade and supply chains.
The back-and-forth military actions are expected to heighten geopolitical tensions and investor uncertainty, with equities, gold and silver likely to react sharply when trading resumes on Monday.
Stock market experts believe the Middle East conflict will hurt global markets, including India’s Dalal Street. They anticipate a big gap-down opening on Monday, with the Nifty 50 index possibly testing crucial support levels at 24,500–24,400 if it breaches immediate support at 24,850–24,800.
Gold and silver prices are also expected to fluctuate significantly on Monday.
If the Strait of Hormuz is closed, more than 20 per cent of the world’s oil supply could be disrupted, creating panic in the oil industry and broader markets.
Anuj Gupta, a SEBI-registered market expert, said, “The COMEX gold rate today is facing a hurdle at $5,300/oz. Breaking above this resistance, gold rates in India may touch ₹1,68,000 to ₹1,70,000 per 10 gm until de-escalation or ceasefire.”
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