The GIFT Nifty dropped precipitously on Monday morning, signalling a gap-down start for the Indian main indexes Sensex and Nifty, as tensions caused crude oil prices to rise by more than 4% and the renewed US-Iran escalation reduced global risk appetite.
Monday’s opening of the Indian main indexes Sensex and Nifty is expected to be much lower, with the GIFT Nifty dropping almost 200 points, suggesting a gap-down start. Concerns over the world’s energy supply have been rekindled by the United States and Iran’s renewed military escalation, which has caused crude oil prices to soar and reduced risk appetite in international markets.
Around 7:45 a.m., the GIFT Nifty was trading at 24,040, down 195 points or 0.8 percent, suggesting that the Nifty 50 may begin well below Friday’s closing of 24,206.90. The poor indicator follows a good close for Indian stocks last week. The Nifty increased 244.1 points, or 1.02 percent, to 24,206.9, while the Sensex gained 827.6 points, or 1.08 percent, to settle at 77,569.4.
As tensions in the Middle East reappear, crude oil prices rise.
After new skirmishes between the US and Iran over the weekend put the precarious peace deal negotiated last month in jeopardy, investor mood became very apprehensive. After trading heavy missile and drone assaults with US troops, Iran claimed to have blocked the Strait of Hormuz once more, raising fears about possible interruptions to one of the most vital oil shipping routes in the world, which transports almost one-fifth of the world’s petroleum.
