Stock Markets Today ​Highlights: Markets end off early lows – Nifty closes above 25,800, Sensex down 1,000 points; Defence bucks the trend – Market News

Indian equity benchmarks staged a late recovery but still ended sharply lower on Monday, as heavy selling kept sentiment subdued through the session. The Sensex tumbled 1,086 points, or 1.34%, to close at 80,200.97, while the Nifty slipped 310 points, or 1.23%, to settle at 24,868.15, trimming part of the day’s steep losses before the closing bell.

Sumit Pokharna, VP Fundamental Research, Kotak Securities said, “Amid escalating tensions involving the United States, Israel, and Iran, Brent crude prices have risen to approximately US$80 per barrel and are expected to remain elevated in the near term. The upward movement reflects both tangible supply-side risks and an increased geopolitical risk premium. Market concerns are largely centered around potential disruptions in the Strait of Hormuz, a critical transit route that accounts for nearly 20% of global oil flows.”

“For India, which imports roughly 85% of its crude oil requirements, sustained higher crude prices present macroeconomic and sector-specific challenges. Oil marketing companies (OMCs) are particularly vulnerable, as elevated crude prices can compress refining margins, increase operating and working capital requirements, and lead to higher borrowing costs and debt levels. If the situation persists, an upward revision in retail fuel prices remains a possibility, although any such adjustment may not be immediate,” he added.

Pankaj Tibrewal, Founder & CIO, IKIGAI Asset Manager, urges investors to avoid any big knee-jerk reaction. He said,

“the escalating conflict between the US-Israel alliance and Iran is deeply concerning from a global economic stability standpoint. India imports approximately 85% of its crude oil, and any sustained disruption to Middle East supply routes – particularly through the Strait of Hormuz – could translate directly into higher oil prices, inflationary pressures, and a widening current account deficit for India in the short term.”

Also read: Geopolitical risk is no longer theoretical: What US–Israel strikes on Iran mean for gold and oil prices

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, “The uncertainty related to the war in West Asia will loom large over the market in the near-term. The major risk from the market perspective is the energy risk arising from the surge in crude. Indications are that a sharp spike in crude by, say 20%, is likely only if the Hormuz Strait is closed, obstructing oil transport through the strait. There is no official confirmation of this yet. If Brent crude remains around $ 76 equity markets may remain weak but are unlikely to witness big crash.”

“Experience tells us that panic selling during during a crisis is wrong strategy. Investors should refrain from selling and watch how things evolve. Data from crises during the last many decades tells us that an event like the present crisis will not have any impact on the market six months later. This is the takeaway from the market behaviour after the recent crises like the Covid crisis, Russia-Ukraine war and the Gaza conflict. The ongoing West Asian crisis is unlikely to be different. However, since a war can spring unexpected surprises, investors have to be cautious. Weakness in the market can be used to slowly accumulate high quality stocks in domestic consumption themes like banking, automobiles, capital goods and defense.”

Indian markets are indicating a sharp negative start in the pre-open session. The Sensex is down 2,775 points, or 3.41%, at 78,512.05, while the Nifty has slipped 519 points, or 2.06%, to 24,659.25.

The steep fall suggests heightened nervousness among investors, likely driven by rising Middle East tensions and surging crude oil prices.

Markets Veteran Ajay Bagga said that the global markets off their lows on two reports –

1.President Donald Trump told the New York Times that he was open to dropping sanctions on Iran if its new leader was “pragmatic.”

2.Iran also made a fresh push to resume talks with the US, the Wall Street Journal reported.

Also read: Crude, currency & capital: 7 key triggers for Indian stock markets as US, Israel-Iran conflict intensifies