Black Monday for Indian Markets: After US Strikes Iran’s Nuclear Facilities, Is a Black Monday Coming?
On Monday, June 23, Nifty 50 and Sensex are likely to open with a gap-down, after the US bombed Iran’s three nuclear facilities.
As of 7:57 AM, the GIFT Nifty was trading near below the 25,000 mark at 24,994 down by 134 points from its previous close. This indicates that Indian markets are in for a rough start on Monday, June 23.
The Nifty reclaimed the 25,000 mark on Friday, closing with strong gains of over 1%. However, bullish traders are expected to remain on high alert on Monday, as escalating fears persist that Iran may retaliate by disrupting the global oil supply from the Middle East.
Asian peers were seen trading in red on Monday amid escalating geopolitical tensions.
Regarding the institutional flow, the both FIIs and DIIs have remained net buyers month till date. However, DIIs were reamined net sellers on Friday.
On Friday, June 20, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth ₹7,940.70 crore. Domestic Institutional Investors (DIIs), on the other hand, turned net sellers to the tune of ₹3,049.88 crore during the same session.
U.S. President Donald Trump confirmed that the United States has joined Israel in striking Iran’s key nuclear facilities, marking a sharp escalation in the conflict that began on June 13. Trump said the sites were “completely and fully obliterated” and warned Iran against retaliation, calling it a choice between “peace or tragedy.”
The situation has heightened tensions across the Middle East, especially in countries hosting U.S. military bases. Iran has vowed revenge, with officials urging attacks on U.S. forces and the closure of the strategic Strait of Hormuz to Western nations. Iran’s Atomic Energy Organization confirmed strikes on its Fordow, Isfahan, and Natanz sites but said its nuclear work would continue.
On Friday, the Indian stock market closed in the green, with the Nifty 50 surging over 1.29% or 319.15 points closing at the 25,112.40 mark. The Sensex jumped by 1.29% or 1046.3 points , to close the day above 82,408.17.
Track the Nifty 50 live price for today’s market session
Asian peers plunged on Monday, after the United State’s attack on three nuclear sites in Iran raised oil prices and investor’s fear of escalation in the middle east conflict.
On Monday, crude oil prices surged to their highest levels last seen since the last leg of January. Crude oil prices surged following reports that Iran is planning to close the Strait of Hormuz in response to US airstrikes. The Strait of Hormuz is one of the world's most vital energy corridors, of global oil and gas supplies passing through this narrow waterway. Any disruption to this route poses a significant threat to global energy security, sparking fears of a supply shock and driving crude prices sharply higher. The escalating geopolitical tension has sent shockwaves through global markets, with investors bracing for increased volatility in the days ahead.
As of 6:27 p.m. ET, Brent crude was trading 3.17% higher at $79.45 per barrel, while U.S. benchmark West Texas Intermediate (WTI) rose $3.18 to $76.19 per barrel in early New York trading.
Gold prices have eased in early trade on Monday. At the time of writing, gold price was down by 0.26% at $3,362.
The U.S. dollar edged slightly higher on Monday at 99.02 as cautious investors turned to safe-haven assets, though the gains remained limited, indicating that markets were holding back ahead of Iran’s response to the U.S. strikes on its nuclear facilities, which have intensified Middle East tensions.
Disclaimer: The article is for informational purposes only and not investment advice.
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