Indian equity markets opened on a shaky note on Monday, June 23, as escalating geopolitical tensions triggered by US airstrikes on Iranian nuclear sites sent shockwaves through global markets. The Sensex tanked 487 points while the Nifty dropped 150 in early trade, with heavy losses seen in the IT, FMCG, and finance sectors. The broader mood was risk-averse, with investors closely watching for retaliation from Iran and further impact on crude oil prices and currency markets.
Tech Stocks Lead Market Sell-Off
The benchmark BSE Sensex fell sharply by 487 points, opening at 81,920, while the NSE Nifty declined by 150 points to 24,914.95 in early trade. The slide came a day after former US President Donald Trump ordered sudden strikes on three sensitive nuclear sites in Iran—Fordow, Isfahan, and Natanz—raising concerns over a wider conflict in the Middle East.
The technology sector bore the brunt of the sell-off, as investors feared global uncertainty could dampen overseas demand and project flow for Indian IT companies. Infosys plunged by 2.05%, HCL Tech slipped 1.31%, and TCS declined by 1.08%. Even mid-tier player Coforge registered a fall of 0.47%. The pressure on IT stocks dragged down the overall indices, given their heavyweight role in both Sensex and Nifty.
Adding to the nervousness was the fall in the Indian Rupee, which slipped by 20 paise to 86.75 against the US Dollar in morning trade. Currency volatility often triggers a flight to safety among investors, further deepening sell-offs in equity markets.
FMCG, Finance Also Under Pressure; Few Stocks in Green
Apart from IT, key FMCG and financial stocks also saw notable losses. Hindustan Unilever and Bajaj Finance were among the early losers, reflecting broader caution in consumer and lending-related sectors amid fears of crude-driven inflation and macro instability.
In contrast, only two major gainers emerged in morning trade—Bharat Electronics and Bharti Airtel—offering some temporary support to an otherwise declining market. Bharat Electronics likely saw strength amid renewed interest in defense-sector stocks following global tensions, while Bharti Airtel managed modest gains despite sectoral headwinds.
Asian markets painted a mixed picture. South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng indices were trading in the red, while Shanghai’s SSE Composite saw marginal gains. The global risk-off mood appeared to weigh more heavily across developed markets, in sync with Friday’s closing on Wall Street where US indices ended mostly lower.
Brent crude futures, meanwhile, surged 1.69% to $78.31 per barrel, signaling potential inflationary pressures if the Iran-Israel-US conflict widens. Rising crude prices are a particular concern for India, which imports over 80% of its oil needs and is vulnerable to global energy shocks.
Friday had seen a brief recovery in Indian equities, snapping a three-day losing streak, after Trump signaled a delay in further military action. However, with the new strikes over the weekend, investor sentiment turned sharply negative once again, showing how quickly geopolitical risks can overwhelm short-term gains.
As markets continue to react to developments in the Middle East, analysts caution that volatility may persist in the near term. With no immediate signs of de-escalation, investors are likely to tread cautiously across global and domestic markets.
