Domestic equity indices slipped over 2.4 percent on Monday’s opening, taking cues from other Asian markets and the exchange of threats between the United States and Iran.
On the other hand, precious metals
like gold and silver also declined on Monday.
While the Sensex was trading 1,800 points lower with a loss of 2.4 percent, the Nifty went below 22,550. The sharp decline came after both indices opened lower.
Sensex opened at 73,732 points, which is 1 percent lower than its previous close of 74,532 points. Nifty opened lower at 22,824 points compared to its previous close of 23,114 points.
The sharp slump in the markets was in line with global markets, which declined by as much as 6 percent, facing the toll of the war in West Asia.
Broader indices were trading down by 2–5 percent.
Nifty Midcap and Nifty Smallcap slipped 3.6 percent and 4 percent, respectively, while Nifty Financial Services and Nifty Bank were down around 3.3 percent.
The bullion market also traded in the red, with gold prices declining 5.64 percent to Rs 1,36,344 per 10 grams of 24-carat purity. Silver futures dropped 7.88 percent to Rs 2,08,896 per kg. According to experts, a strong dollar and a steady repo rate by the Fed weighed on precious metals even as war raged in West Asia.
After days of talking about “winding down” the war with Iran, US President Donald Trump on Saturday gave a 48-hour ultimatum to the Shia-dominated state to open the Strait of Hormuz.
Otherwise, Trump threatened, Iran’s energy facilities would be “obliterated.”
“If Iran doesn’t fully open, without threat, the Strait of Hormuz, within 48 hours from this exact point in time, the United States of America will hit and obliterate their various power plants, starting with the biggest one first,” Trump wrote on his social media platform, Truth Social.
In retaliation, Iran warned of expanding the conflict further. The country’s Permanent Representative to the International Maritime Organization, Seyed Ali Mousavi, said that the strait would be open for “everyone except enemies.”
With Trump’s ultimatum set to end on Monday, markets are bracing for further deterioration of the situation.
