Domestic stock markets are expected to open cautiously on Monday as investors remain worried about rising global tensions. This week, both the BSE Sensex and the Nifty 50 have fallen by more than 1.5 percent, reflecting weak investor sentiment.
On Friday, the Sensex dropped sharply by 961.42 points, or 1.17 percent, to close at 81,287.19. The Nifty also fell 317.90 points, or 1.25 percent, ending the day at 25,178.65. The decline was mainly due to global uncertainty and cautious trading by investors.
However, there are some early signs that the market may see a small recovery. Nifty futures on the NSE International Exchange rose by 90 points, or 0.36 percent, to trade at 25,375. This suggests that markets could open slightly higher on Monday, giving some relief to investors.
One of the main reasons for market nervousness is rising tension between the United States and Iran. Reports say that Israel carried out what it called a pre-emptive strike against Iran. This action could further increase tensions in the region and weaken diplomatic efforts related to Iran’s nuclear programme.
Market experts say that the short-term direction of Indian markets will depend largely on how the US–Iran situation develops. Hariprasad K, a SEBI-registered research analyst and founder of Livelong Wealth, said that geopolitical tensions remain a major global risk and can quickly change investor confidence.
Ponmudi R, CEO of Enrich Money, added that rising tensions have also pushed up crude oil prices. Higher oil prices are a concern for India, which imports most of its oil needs. If oil prices remain high, it could increase inflation and put pressure on the country’s economy.
Overall, investors are expected to remain cautious in the coming sessions, closely watching global developments, crude oil prices, and foreign market trends before making fresh investments.