Sensex, Nifty plunge over 2 per cent after Donald Trump’s Iran remarks

The BSE Sensex and NSE Nifty 50 both dropped over two per cent within minutes of the opening bell, erasing gains from the previous session's relief rally.

BSE Sensex falls by 2.08 per cent on

The BSE Sensex stood at 71,616.03 points, down 1,518.29 points, or 2.08 per cent, at 9:16 am. Similarly, the NSE Nifty 50 stood at 22,216.90 points, reflecting a decline of 462.50 points or 2.04 per cent. The downward movement follows a period of brief recovery, where the Nifty had closed 348 points higher, and the Sensex had climbed 1187 points.

While the indices saw a gap-up opening recently, the short-term trend remains weak. The market is now testing critical support levels that will determine the trajectory for the remainder of the week.

Nifty and Sensex closed higher on Wednesday

Earlier on Wednesday, Indian equities started off the first day of the new financial year on a positive note, staging a sharp rebound after recent losses, supported by improving global sentiment. Benchmarks opened firm and sustained gains through the session, with the Nifty50 closing higher by 1.6 per cent. Broader markets outperformed, as Nifty midcap and smallcap indices advanced 2.2 per cent and 3.3 per cent, respectively, reflecting improving risk appetite and bargain hunting at lower levels.

Expert Opinion

Market experts noted that the volatility is linked to the lack of a definitive ceasefire in the Middle East amid the ongoing West Asia War. 

Market and banking expert Ajay Bagga said, "Trump Speech Highlights: Nothing new, no ceasefire announcement, threats to Iran, Hormuz reopening responsibility on countries importing through it, 2-3 more weeks of kinetic action, no off-ramp, no talk of ground troop action." Markets disappointed as the same messaging was rehashed after building up expectations of a very significant announcement. US futures down, Indian futures down, oil back at 105$," as cited by ANI.