Iran Shuts Strait of Hormuz After US Strikes, Sparks Market Fear: Sensex Tanks 400 Points, Nifty Slips To 23,000
Indian benchmark indices Sensex and Nifty50 opened sharply lower due to a global sell-off triggered by higher-than-expected US inflation and escalating US-Iran conflict, with oil prices surging after Iran shut the Strait of Hormuz. The Sensex dropped around 400 points, while the Nifty slipped below 23,000, mirroring losses in Wall Street and Asian markets amid heightened geopolitical tensions and inflation fears.
Indian stock markets opened weaker on Thursday, following a global sell-off driven by US inflation concerns and escalating tensions between the US and Iran. The BSE Sensex fell nearly 400 points to around 73,500, while the NSE Nifty50 dipped below 23,000, down roughly 120 points at the opening bell. The downturn reflected broader market anxiety, as Wall Street indices closed sharply lower overnight after a hotter-than-expected US inflation report. The GIFT Nifty futures contract signaled early losses, trading at 23,160, down 79 points, foreshadowing a weak start for Indian equities. Pre-market trading showed further declines, with the Sensex down 331 points and the Nifty off 160 points by 9:01 AM. Asian markets also declined, with Japan’s Nikkei and South Korea’s Kospi falling amid global risk aversion. US markets led the sell-off, with the Dow Jones dropping 953 points, the S&P 500 falling 1.62%, and the Nasdaq Composite declining nearly 2%. Investors now anticipate at least one Federal Reserve rate hike before year-end, adding pressure despite expectations of a pause in June. The conflict between the US and Iran intensified after fresh American strikes, with Iran retaliating by targeting US military bases in the Gulf. Iran’s closure of the Strait of Hormuz further escalated tensions, pushing oil prices higher and deepening market fears. The move raised concerns over global energy supplies and geopolitical stability. The combination of inflation fears, rising oil prices, and geopolitical risks created a risk-off environment, dampening investor sentiment across global markets. Indian equities, sensitive to both domestic and international cues, opened lower as traders reacted to the broader downturn.
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