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Only three stocks managed to gain in the Nifty 50 index during morning trade
Markets opened sharply lower on Monday morning, with the Nifty 50 opening at 24,939.75, down from its previous close of 25,112.40, and trading at 24,871.95 at 9:44 am, down 240.45 points or 0.96 per cent.
Similarly, the Sensex opened at 81,704.07 compared to its previous close of 82,408.17, and slipped further to 81,624.01 by 9.44 am, down 784.16 points or 0.95 per cent, as investors reacted to escalating geopolitical tensions following US strikes on Iranian nuclear facilities over the weekend.
The weak opening came despite last week’s strong rally that saw both benchmark indices settle above their psychological levels of 25,000 and 82,000 respectively. Only three stocks managed to gain in the Nifty 50 index during morning trade - Bharat Electronics Limited (BEL) rose 1.18 per cent to ₹413.05, Nestle India gained 0.32 per cent to ₹2,367.90, and Oil and Natural Gas Corporation (ONGC) marginally increased 0.01 per cent to ₹251.91.
“Markets could be in for a weak opening tracking bearish global cues, with the US too entering the Israel-Iran conflict which would keep investors on the edge,” said Prashanth Tapse, Senior VP Research at Mehta Equities Ltd. “The biggest concern for our stock markets is the Iranian parliament recommending the Strait of Hormuz closure.”
The selling pressure was broad-based with major losers including Shriram Finance declining 2.44 per cent to ₹650.10, Infosys falling 2.34 per cent to ₹1,585.00, Mahindra & Mahindra dropping 1.79 per cent to ₹3,127.30, Hero MotoCorp sliding 1.68 per cent to ₹4,265.50, and Power Grid Corporation losing 1.48 per cent to ₹288.75.
Crude oil futures surged in early trade, with July contracts on the Multi Commodity Exchange trading at ₹6,530, up 1.97 per cent from the previous close of ₹6,404. Brent oil futures climbed 1.84 per cent to $76.84 while WTI crude gained 1.95 per cent to $75.28.
“If the war prolongs WTI oil prices could spike towards $100 a barrel and inflation risk in India will be back on the front pages as fuel prices move up drastically,” Tapse warned.
Gold prices remained volatile near $3,360 per ounce as safe-haven demand increased. “Gold and silver prices hovered near $3,360 and $36 per ounce respectively on Monday, remaining volatile as tensions escalated in the Middle East after the U.S. joined Israeli strikes on Iran’s nuclear sites,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
However, some market experts believe the impact may be limited. “Even though the US bombing of Iran’s three nuclear facilities has worsened the crisis in West Asia, the impact on the market is likely to be limited,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “The market construct continues to favour a ‘buy on dips’ strategy.”
The financial sector, which had gained significantly last week following RBI’s relaxation of provisioning norms for infrastructure loans, faced selling pressure. The central bank’s decision to reduce provisioning requirements from up to 5 per cent to 1 per cent for under-construction infrastructure projects had boosted banking stocks in the previous session.
Currency markets also reflected the risk-off sentiment with the rupee under pressure. Last week’s data showed the USD/INR pair trading between 85.782-86.916, closing at 86.580.
The broader market sentiment was cautious as investors awaited further developments in the Middle East conflict. “President Trump warned of further military action if Iran resists peace, intensifying fears and boosting demand for safe-haven assets,” Kalantri noted.
Despite the morning weakness, technical analysts maintained that the market’s medium-term outlook remained intact. “The market assessment is that there are limits to what Iran can do against US and Israel. That’s why the early market responses - crude prices, US futures, absence of panic in Asian markets - have been muted,” Vijayakumar explained.
Foreign institutional investors had returned to Indian markets last week, purchasing equities worth ₹8,709 crore, while domestic institutional investors infused ₹12,635 crore into the cash segment, providing some underlying support to the market structure.
Published on June 23, 2025
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