Indian Stock Market Hit by Global Turmoil as Nifty, Nikkei, Nasdaq Slip Amid US-Iran Tensions

Indian Stock Market Outlook: Monday

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday, driven by escalating US-Iran war concerns and global market volatility. Asian markets traded sharply lower, while the US stock market slid last week, with the S&P 500 closing at a six-month low.

Key Market Triggers

This week, investors will closely monitor developments over the US-Iran war, trends in crude oil prices, Foreign Institutional Investor (FII) flows, rupee movement, and other domestic and global economic data releases.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Indian Market Performance

On Friday, the Indian stock market ended higher, led by a short-covering rally after the previous session's sharp decline. The Sensex gained 325.72 points, or 0.44%, to close at 74,532.96, while the Nifty 50 settled 112.35 points, or 0.49%, higher at 23,114.50.

Global Market Cues

Asian markets slumped on Monday, with the MSCI's broadest index of Asia-Pacific shares outside Japan falling 1.2%. Japan's Nikkei 225 plunged 5%, while the Topix declined 4.4%.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Gift Nifty

Gift Nifty was trading around 22,808 level, a discount of nearly 332 points from the Nifty futures' previous close, indicating a gap-down start for the Indian stock market indices.

US Stock Market

The US stock market ended sharply lower on Friday, with the S&P 500 closing at its lowest in six months. The Dow Jones Industrial Average declined 0.96% to 45,577.47, while the S&P 500 plunged 1.51% to end the session at 6,506.48.

US-Iran War

The US-Iran war has entered its fourth week, with both countries threatening to target critical infrastructure. Iran said the Strait of Hormuz would be "completely closed" immediately if the US follows up on President Donald Trump's threat to attack its power plants.

Core Sector Growth

Production growth in India's eight core infrastructure sectors slowed to a three-month low of 2.3% in February.

Bond Yields

The 10-year US Treasury yields were at an eight-month high of 4.4110%, having climbed 44 basis points since the war began. The Japanese government bond yields climbed to a two-month high, with the benchmark 10-year JGB yield rising 5.5 basis points to 2.315%.

FPI Selling

Foreign Portfolio Investors (FPI) sold Indian equities worth over ₹1 lakh crore in 2026 so far, with outflows touching ₹1,01,527 crore.

Crude Oil Prices

Crude oil prices were stable after a sharp rise as Trump gave Iran a 48-hour ultimatum to open the Strait of Hormuz or face decimation of its energy infrastructure.

Gold Rate

Gold prices extended losses after tumbling nearly 11% last week in its worst week since 1983.