Sensex crashes over 2,400 points, Nifty slips below 24,000 amid Middle East tensions

Mumbai, March 9: Stock markets began the week on a weak note on Monday with benchmark indices plunging sharply as the Middle East conflict intensified and global crude oil prices surged.

As of 9:27 am, NSE Nifty50 was trading at 23,703.60, down 746.85 points or 3.05 percent. BSE Sensex plunged 2,415.69 points or 3.06 percent to trade at 76,503.21.

The sharp fall comes after a weak close on Dalal Street last week. Eight of the ten most valued companies together saw their market capitalisation shrink by Rs 2,81,581.53 crore.

Analysts said geopolitical developments are likely to remain the key factor influencing market direction this week. Investors are closely watching the impact of the ongoing crisis in the Middle East on global crude oil prices.

Market participants will also track global cues and the trading behaviour of foreign investors, which are expected to play a key role in shaping sentiment on Dalal Street.

Oil prices jumped sharply on Monday and climbed above $114 per barrel for the first time since 2022. The rise came amid fears of supply disruptions and risks to key shipping routes in the Middle East due to the intensifying conflict involving Iran.

The global benchmark Brent crude rose past $114 a barrel after trading reopened on the Chicago Mercantile Exchange. The surge marked a 23 percent jump from Friday’s close of $92.69.

"This week, movements in global crude oil prices and further geopolitical developments in West Asia will remain critical external variables influencing market direction. The week will also feature key macroeconomic releases that could shape near-term sentiment," Ajit Mishra, SVP, Research at Religare Broking Ltd, told PTI.

Ponmudi R, CEO of Enrich Money, said investors should brace for volatility as geopolitical tensions dominate market sentiment.

He added that trends in foreign institutional investor flows and currency movements will remain under close watch as they reflect broader shifts in global capital allocation and investor confidence in emerging markets such as India.

Dalal Street had a difficult run last week with benchmark indices posting sharp losses. The BSE Sensex fell 2,368.29 points or 2.91 percent, while the Nifty declined 728.2 points or 2.89 percent.

Foreign investors also stepped up selling in Indian equities. Over the past four trading sessions, they withdrew nearly Rs 21,000 crore from the market as the Middle East crisis intensified.

Asian markets also recorded sharp losses. Hong Kong’s Hang Seng Index plunged more than 700 points or 2.7 percent to 25,053. Japan’s Nikkei tumbled 3,880 points to trade at 51,740 at around 9:00 am IST. South Korea’s Kospi also declined sharply and fell 7 percent.