India’s equity markets opened sharply lower on Thursday, tracking global jitters after US President Donald Trump signalled continued military action against Iran in the coming weeks. The BSE Sensex dropped 1,411 points, or 1.92 per cent, to 71,716.82 in early trade, while the NSE Nifty declined 445 points, or 1.98 per cent, slipping below the 22,250 mark to 22,210.67.
The decline was not limited to select stocks or sectors. Selling pressure was visible across the board, reflecting a clear shift towards risk aversion. Investors appeared to move away from equities amid rising geopolitical uncertainty rather than reacting to company-specific triggers.
Midcaps and smallcaps take a bigger hit
The broader market witnessed steeper losses compared to the frontline indices. The Nifty Next 50 fell close to 3 per cent, while the Nifty Midcap 100 and Smallcap 100 dropped 2.98 per cent and 2.95 per cent respectively. The sharper fall in these segments indicates investors are trimming exposure to higher-risk stocks first during uncertain times.
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Market volatility surged alongside the sell-off. The India VIX rose 4.7 per cent to 26.19, pointing to expectations of heightened fluctuations ahead. The spike is largely linked to geopolitical tensions and a sharp rise in crude oil prices.
Losses were widespread across sectors. Realty stocks led the decline, falling 3.81 per cent, followed by PSU banks at 3.46 per cent and financial services at 2.47 per cent. Pharma and healthcare indices also dropped sharply, down 3.65 per cent, suggesting limited defensive buying.
Consumption-focused sectors such as consumer durables and auto also traded lower, weighed down by concerns over rising crude prices and their impact on demand. IT stocks, however, showed relative resilience, declining only 0.78 per cent, supported by their global revenue exposure.
Oil surge and bond yields add pressure
Following Trump’s remarks, Brent crude jumped about 5 per cent to around $105 per barrel. At the same time, the US 10-year bond yield firmed up to 4.36 per cent. These developments added pressure on global markets and weighed marginally on gold and silver prices.
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In his televised address, Trump said, “We are going to hit them extremely hard over the next two to three weeks. We are going to bring them back to the Stone Age, where they belong.”
Nifty technical outlook
As per a report by News18, Anand James, chief market strategist at Geojit Investments Limited, said, “Inability to float above 22770 after the upside gapped opening yesterday points to underlying weakness. We will go in today, eying 21900, but 22330 may be expected to offer some buying interest. However, it would require consistent trades above 22630 to shrug off weakness.”
