The Indian equity markets opened sharply lower on Monday amid escalating tensions between Iran and the United States. The 30-share BSE Sensex crashed over 1,100 points while the broader Nifty 50 declined around 300 points in early trade.
Analysts said market participants are worried that the Union Government may impose austerity measures or hike petrol prices, which could have a cascading effect on the economy.
GIFT Nifty was indicating a gap-down opening of about 200 points. SBI Securities expects FY27 real GDP growth at 6.6 per cent.
At 10:00 AM, the Nifty 50 was trading 301.85 points or 1.25 per cent lower at 23,874.75, while the Sensex was down 1,047.57 points or 1.35 per cent at 76,280.62.
Although the Indian economy has largely navigated the global challenges triggered by the closure of the Strait of Hormuz, urban consumption has moderated slightly.
However, rural consumption remains strong, supported by positive signals from both farm and non-farm activities.
Most Asian indices were trading in the red, except for South Korea’s KOSPI, which rose over 4 per cent in early trade.
Meanwhile, shares of major gold and jewellery brands fell by more than 12 per cent after Prime Minister Narendra Modi appealed to citizens to reduce gold and energy consumption.
Gold and silver prices also declined following the appeal, which urged Indians to stop buying gold and silver for the next 12 months.
Also read: Sensex slumps 516 points amid foreign fund outflows
Follow us
