Stock Market Suffers 2.5% Plunge Amid Ongoing Global Tensions

Market Update: Indian Equities and Currency Plunge on Global Uncertainty

Date: Monday Market Performance:

• The Sensex fell by 1,904.61 points (2.5%) to 72,628.35, its lowest level since the West Asia conflict escalated.
• The Nifty dropped by 610.35 points (2.6%) to 22,504.15, its lowest level since April 9, 2025.
• The volatility index surged by 15% to 26, its highest level since early June 2024.

Market Analysis:

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The Indian equity market declined sharply on Monday, tracking weak global cues as the West Asia conflict entered its fourth week. The Nifty50 has declined by 10% since the US-Iran war began on February 28 and is down 14% from its lifetime high. Analysts attribute the decline to the lack of clarity on the duration and outcome of the conflict.

Key Levels:

• The 22,000 level is back in focus, according to Anand James, Chief Market Strategist at Geojit Investments.
• A decisive recovery and sustainment above 24,500–25,000 would indicate improving sentiment and a stable recovery.

Currency and Bond Market:

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• The rupee fell by 41 paise to hit a record low of 93.94 against the US dollar in early trade.
• Bond yields moved higher, reflecting pressure from global and domestic factors.
• Analysts at Choice Broking recommend accumulating fundamentally strong stocks on meaningful declines and waiting for a decisive recovery before considering fresh long positions.