Mumbai (Maharashtra) [India], June 18 (ANI): Indian stock markets opened under pressure on Wednesday as geopolitical tensions between Israel and Iran entered the sixth day, with the possibility of direct U.S. involvement adding to investor worries.
The Nifty 50 opened at 24,797.15, down by 65.05 points or 0.26 per cent, while the BSE Sensex fell 269 points to start the day at 81,313.9, a decline of 0.33 per cent.
Geopolitical tensions escalated further after U.S. President Donald Trump called for an “unconditional surrender” by the Iranian regime, something Iran has ruled out. Israel, which has reportedly achieved many of its military objectives quickly, is said to control the skies over Iran.
However, Iran’s missile arsenal continues to pose a threat, and the conflict is now being seen as a test of endurance. Despite the loss of key military and nuclear leaders, Iran’s nuclear facilities remain largely intact, and the country is expected to continue resisting.
Market expert Ajay Bagga told ANI that the key question now is whether the U.S. will step into the conflict.
“The big question facing markets and friends and foes of both side alike is, “Will the US enter the war and bring its bunker buster armaments to bear on Iranian nuclear sites?” That escalation will impact markets but if it happens, it will also lead to greater regional stability in the medium term”, he said.
Apart from the geopolitical risks, investors are also keeping an eye on the U.S. Federal Reserve’s meeting on Wednesday. Weak consumer retail sales numbers for May have lowered expectations of a rate cut, although a more dovish tone from the Fed is still possible.
While Israel and Iran together contribute less than 1 per cent to global GDP, the real concern for markets is the potential impact on oil supplies. This makes the conflict significant for financial markets in the short term.
Broader market indices on NSE also reflected the weak sentiment. The Nifty 100 was down by 0.21 per cent in early trade. Nifty Midcap dropped 0.25 per cent and Nifty Smallcap slipped 0.10 per cent, highlighting weakness across the board.
On the sectoral front, all major Nifty indices opened in red, except Nifty Media and Nifty Realty. Nifty IT dropped 0.34 per cent, Metal was down 0.10 per cent, and Auto slipped 0.08 per cent.
Asian markets showed a mixed trend on Wednesday. While indices in Singapore and Hong Kong were down at the time of reporting, Japan’s Nikkei 225 rose 0.62 per cent, Taiwan’s Weighted Index gained 0.60 per cent, and South Korea’s KOSPI climbed 0.54 per cent. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
