GG News Bureau
Mumbai, 23rd June: The Indian stock market witnessed a sharp decline in early trade on Monday, with the benchmark indices registering significant losses amid rising geopolitical tensions in West Asia. The BSE Sensex plunged over 700 points, while the Nifty 50 slipped below the crucial 24,900 mark, reflecting broad-based selling across sectors.
The Sensex opened at 81,704.07 compared to its previous close of 82,408.17 and fell to an intraday low of 81,683.47 — a loss of over 700 points or nearly 1 per cent. The Nifty 50 also mirrored the fall, opening at 24,939.75 and hitting a low of 24,891.
The bearish sentiment extended to the broader markets, with BSE Midcap and Smallcap indices both declining nearly 1 per cent. The market capitalisation of BSE-listed companies dipped sharply by ₹3 lakh crore within the first 15 minutes of trade, dropping from ₹448 lakh crore in the previous session to around ₹445 lakh crore.
The selloff comes amid fresh fears triggered by the escalating conflict between Israel and Iran. Over the weekend, the United States launched strikes on three nuclear facilities in Iran, significantly raising concerns about the stability of the region.
“The uncertain factor now is the timing and nature of Iran’s response,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “If Iran retaliates by damaging US defence facilities or harming military personnel, it could trigger a larger response from Washington, worsening the crisis.”
Adding to the concerns are reports that Iran may consider closing the Strait of Hormuz — a critical global oil transit route through which nearly 20 per cent of the world’s crude supply passes daily. A shutdown could severely disrupt oil supplies, spike global prices, and hit oil-importing economies like India.
Oil prices have already shown upward movement amid these fears, with Brent crude inching closer to $83 per barrel.
Market watchers advise caution as investors weigh the global geopolitical risks and await cues on how the situation in the Middle East unfolds in the coming days.
