Indian equity markets opened sharply lower on Monday amid fears of renewed military escalation in the Middle East after Iran and Israel traded fresh strikes.
The Sensex fell 835.41 points, or 1.13 per cent, to 73,407.93 by 9:16 am. It had opened at 74,243.34, down from the previous close of 74,243.34.
The Nifty 50 declined 248.55 points, or 1.06 per cent, to 23,118.15 compared with the previous close of 23,366.70. On a sectoral basis, all major indices were in the red except for pharma and healthcare.
All 16 major sectors logged losses, with high-weightage financials and IT stocks falling over 1.3 per cent and 1.5 per cent, respectively. Broader small-cap and mid-cap stocks also declined between 1.2 per cent and 1.3 per cent in early trade.
Brent Crude futures jumped 3.5 per cent to $96.5 a barrel after Iran launched missiles at Israel in response to Israeli strikes on Beirut.
The escalation has reduced hopes for an end to the wider conflict and raised fears of disruption to global oil supplies.
Meanwhile, the MSCI Asia ex-Japan index tumbled 2.7 per cent, South Korea’s Kospi fell 4.8 per cent, and Japan’s Nikkei dropped 3.8 per cent, the latter dragged down by sharp losses in AI-linked stocks after their recent surge.
Sentiment was further weighed by a stronger-than-expected US May jobs report, which lifted expectations of a Federal Reserve rate hike by the end of 2026.
According to CME FedWatch, the probability of a Fed rate increase by December 2026 rose to 72.3 per cent from 45.2 per cent a week earlier.
A stronger US dollar, higher yields on US Treasury bonds, and revised Fed rate expectations have added to the pressure on investor sentiment in emerging markets, including India.
Also read: Crude oil prices near $100 a barrel
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