Stock Market Plunges Amid Global Tensions: Sensex Drops Over 800 Points, Nifty 50 Falls Below 23,100

Indian Stock Market Opens Lower Amid Global Market Selloff

The Indian stock market opened lower on Monday, tracking a sharp selloff across Asian markets amid renewed tensions in the Middle East and a spike in crude oil prices. Fears of an interest rate hike in the US also weighed on global investors' risk appetite.

The BSE Sensex opened at 73,421.61, a loss of 821.73 points, or 1.11%, while the Nifty 50 opened at 23,080.70, down by 286.00 points, or 1.22%. The Bank Nifty index opened at 53,853.45, a decline of 642.80 points, or 1.18%.

Selling was broad-based, with the Nifty Smallcap 100 and the Nifty Midcap 100 indices declining over 1% each. The Nifty IT, Nifty Metals, Nifty Auto, and Nifty Realty sectors slumped over 1.5% each, while the Nifty Media and Nifty Pharma sectors witnessed gains.

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Global market trends are expected to impact the Indian market, with Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noting that there are strong headwinds for the market as trading begins for the week. The sharp cut of 4.18% in the Nasdaq last Friday has rattled global markets, with tech-dominated South Korea and Taiwan facing a big sell-off. The escalation of conflict in West Asia, with Iran firing missiles at Israel in retaliation to Israel's aggression in Lebanon, has hardened crude prices.

Dr. Vijayakumar also noted that the strong US jobs data would not lead the US Federal Reserve to cut rates as President Donald Trump wants, and hence the rates are likely to be on hold for some time.