23 March,2026 11:08 AM IST | Mumbai | mid-day online correspondent
Sensex dives 1,555 points; investors cautious over geopolitical risks. Representational Pic
Indian benchmark indices dropped sharply in early trade on Monday, reflecting rising investor concerns over the ongoing Middle East conflict and its impact on global financial markets.
The 30-share BSE Sensex fell 1,555.62 points, or two per cent, to 72,977.34, while the 50-share NSE Nifty tumbled 479.95 points, or two per cent to 22,634.55.
Among the Sensex companies, major laggards included Tata Steel, State Bank of India, Bajaj Finance, Bharat Electronics, Titan, and Adani Ports. HCL Tech was the only stock in the Sensex to show gains during the early trade.
Investors were also influenced by foreign fund movements. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,518.39 crore on Friday. On the other hand, Domestic Institutional Investors (DIIs) purchased stocks worth Rs 5,706.23 crore, partially offsetting the outflows. Foreign investors have pulled out around Rs 88,180 crore (approximately USD 9.6 billion) from Indian equities so far this month.
The steep fall on Monday followed modest gains last Friday, when the Sensex climbed 325.72 points, or 0.44 per cent, to 74,532.96, and the Nifty edged higher by 112.35 points, or 0.49 per cent, to close at 23,114.50. Analysts say the renewed geopolitical risks have outweighed previous positive sentiment, causing a sharp correction in the markets.
The bearish trend was not limited to India. Asian markets opened sharply lower on Monday, with South Korea's Kospi down nearly 6 per cent. Japan's Nikkei 225 declined around 4.6 per cent, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index also traded in negative territory. The US market had ended significantly lower on Friday, continuing the global risk-off trend.
The latest slide in Indian markets comes as the conflict in the Middle East entered its fourth week, driving crude oil prices higher. Brent crude, the global oil benchmark, rose 0.62 per cent to USD 112.9 per barrel. Investors fear that escalating geopolitical tensions, especially between the United States and Iran around the strategic Strait of Hormuz, could disrupt global energy supplies.
"The weakness reflects a significant deterioration in global risk sentiment, as geopolitical tensions in the Middle East continue to escalate," said Hariprasad K, research analyst and founder of Livelong Wealth," as per PTI reporting.
Asian markets opened deep in the red, with Japan's Nikkei 225 plunging around 5 per cent, Hong Kong's Hang Seng fell 3.5 per cent, and South Korea's Kospi dropped nearly 6 per cent. US markets also ended lower in the previous session, underscoring a broad-based risk-off move.
Overall, the markets are reflecting heightened anxiety among investors due to a combination of global geopolitical tensions and massive foreign fund outflows. Experts suggest that market participants should remain cautious while monitoring developments in the Middle East and their impact on crude oil prices, which can directly influence inflation and corporate earnings in India.
(With PTI Inputs)
