Indian equity benchmarks Sensex and Nifty opened sharply lower on Monday amid escalating geopolitical tensions in the Middle East and fears over energy supply disruptions.
The BSE Sensex fell 1,500 points to 73,070 in early trade, while the NSE Nifty declined 462 points to 22,652.
Immediate support for the Nifty is seen at 22,900; a decisive breach could accelerate selling pressure towards the 22,200 level.
On Friday, the Sensex closed 325.72 points or 0.44 per cent, higher at 74,532.96, and the Nifty 50 gained 112.35 points or 0.49 per cent, to 23,114.50.
The sharp reversal reflects heavy foreign institutional investor outflows and a weakening rupee, driven by persistent West Asia tensions that have triggered an energy crisis across Asia, including Japan, South Korea, India, and Pakistan.
Overall, the market remains range-bound with a negative bias unless key resistance levels are convincingly reclaimed.
Gaurav Udani, Founder of ThinCredBlu Securities Pvt. Ltd, said: “Nifty is expected to open sharply lower around the 22,750 mark, down nearly 350 points, as global markets remain under pressure.
"The ongoing energy and geopolitical tensions have triggered volatility across global markets. Bitcoin has gained strength while gold prices are falling due to the jump in the escalation ladder between the United States and Iran.”
Meanwhile, Saudi Aramco has decided to cut oil supplies to Asian countries for the second consecutive month, citing ongoing tensions and disruptions in global energy markets caused by the partial closure of the Strait of Hormuz.
The resulting energy crisis has fuelled economic uncertainty, causing Asian markets to slide within minutes of their opening bells in Japan, South Korea, Taiwan, Australia, and India.
Also read: Asian markets slide in early trade
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