Nifty, Sensex Open Flat as US-Iran Tensions Spark Investor Caution in Global Markets

Indian equity markets began Thursday’s session on a cautious note, with benchmark indices Nifty 50 and Sensex trading flat. The subdued start is attributed to growing investor anxiety over escalating tensions in the Middle East, particularly concerns about a potential U.S. military strike on Iran.

At the opening bell, the Sensex hovered near the 77,300 mark while the Nifty traded around 23,500 levels, showing little momentum as geopolitical uncertainty loomed large.

Rising Global Tensions

Global markets are on edge following reports that the United States may consider retaliatory action against Iran. Analysts fear that such a move could open a new front in an already volatile region, leading to disruptions in oil supply chains, inflationary pressures, and increased volatility in global financial markets.

Domestic Market Sentiment

Back home, investor sentiment remains fragile as traders are closely watching international developments. The India Volatility Index (VIX), a measure of market fear, saw a marginal uptick, reflecting risk-off sentiment among investors.

“Any escalation in US-Iran tensions can severely impact oil prices and trigger a sell-off across emerging markets,” said a market analyst. “Indian markets are not immune, especially considering our dependence on crude imports.”

Sector Highlights

Energy, metals, and banking stocks showed mixed trends, while IT and FMCG sectors remained relatively stable. Investors are also awaiting cues from upcoming domestic inflation data and global central bank commentary for further direction.

Outlook

As the geopolitical landscape remains tense, market experts advise caution, recommending a defensive portfolio stance and careful monitoring of international developments.

The day’s trajectory will largely depend on fresh updates from the Middle East and global cues from the U.S. and Asian markets.