The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open sharply lower on Monday after an overnight global market sell-off triggered by a surge in crude oil prices. The expanding US–Israeli conflict with Iran has raised concerns about tighter oil supply and prolonged disruptions to shipments through the Strait of Hormuz.

Asian markets plunged, while the US stock market closed lower last week as the escalating Middle East conflict weighed heavily on investor sentiment.

This week, investors will track several key market triggers, including fresh developments in the US–Israel–Iran war, movements in crude oil prices, gold and silver rates, foreign fund flows, inflation data, and other important domestic and global macroeconomic indicators.

Moreover, on Friday, the Indian stock market fell sharply as persistent worries over the US–Iran conflict, rising crude oil prices, and heavy foreign capital outflows pressured investor sentiment.

Domestic Market Recap

On Friday, Indian indices closed red:

• Sensex crashed by 1,097 points (1.37%) to close at 78,918.90
• Nifty 50 moved down by 315.45 points (1.27%) to settle at 24,450.45

Gift Nifty

Gift Nifty was trading near 23,824, around 722 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market closed lower on Friday as disappointing labour market data and a 12% surge in oil prices, driven by escalating tensions in the Middle East, weighed on investor sentiment.

• The Dow Jones Industrial Average slumped by 453.19 points (0.95%) to close at 47,501.55.
• S&P 500 down by 90.69 points (1.33%), ending at 6,740.02.
• The Nasdaq Composite was lower by 361.31 points (1.59%), finishing at 22,387.68.

Crude Oil Prices

• Brent crude skyrocketed by 17.80% to $109.19/barrel
• US West Texas Intermediate (WTI) crude was trading 20.11% higher at $109.18/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: Iran continued its attacks across the Persian Gulf, targeting key infrastructure, while Israel launched fresh strikes that hit oil storage facilities in Tehran. Following the killing of Ayatollah Ali Khamenei, Iran’s state media reported that the country has named his son, Mojtaba Khamenei, as the next supreme leader.
2. US Nonfarm Payrolls: The US economy unexpectedly lost jobs in February, and the unemployment rate rose to 4.4%. Nonfarm payrolls fell by 92,000 jobs last month after a downwardly revised gain of 126,000 in January. 

Ready to invest like a pro? Tradz by EquityPandit app equips you with 100+ Free tools and knowledge you need to succeed. Download the Tradz by EquityPandit app and gain access to daily stock lists and insightful market analysis and much more!