Markets tumble as US strikes Iranian nuclear sites, sparking West Asia tensions

Sensex and Nifty slumped sharply on Monday following US airstrikes on Iranian nuclear facilities, stoking fears of further escalation in the Middle East. While global markets reacted cautiously, analysts believe the impact on Indian equities may remain limited.

Mumbai: Equity benchmark indices Sensex and Nifty tumbled in early trade on Monday amid heightened tensions in the Middle East after the US bombed three major nuclear sites in Iran.

The 30-share BSE Sensex tumbled 705.65 points to 81,702.52 in early trade. The 50-share NSE Nifty dropped 182.85 points to 24,929.55.

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The US bombed three major nuclear sites — Fordow, Natanz and Isfahan — in Iran, bringing itself into the Israel-Iran conflict.

“Even though the US bombing of Iran’s three nuclear facilities has worsened the crisis in the West Asia, the impact on the market is likely to be limited. Even though the possibility of the closure of Hormuz Strait is a threat, it is important to understand that this has always been only a threat and the Strait had never been closed,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

From the 30-Sensex firms, Infosys, HCL Tech, Hindustan Unilever, Bajaj Finance, Power Grid and Eternal were the biggest laggards.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, and Hong Kong’s Hang Seng were trading lower while Shanghai’s SSE Composite index quoted marginally higher.

US markets ended mostly lower on Friday.

Global oil benchmark Brent crude jumped 1.69 per cent to USD 78.31 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 7,940.70 crore on Friday, according to exchange data.

On Friday, the 30-share BSE Sensex surged 1,046.30 points or 1.29 per cent to settle at 82,408.17. The Nifty climbed 319.15 points or 1.29 per cent to 25,112.40.