Sensex Down 800 Points As US Bombing On Iran Escalates Middle East Crisis

Indian equities crashed in early trade after the US bombing of three Iranian nuclear sites heightened the Middle East crisis. Sensex opened about 500 points but quickly plummeted over 800, while Nifty lost nearly 250 points. At 9:45 am, Sensex stood at 81,560 points and Nifty at 24,859 points.

Among the top losers in the Sensex pack were Infosys, HCL Tech, Hindustan Unilever, and TCS, while Bharat Electronics Limited and Bharti Airtel were among the top gainers.

The plunge in Indian markets followed a global meltdown amid concerns that the conflict could disrupt the energy market. The Asian markets were largely in the red, including Japan, Hong Kong, and Seoul, while the US futures were down about 0.5%.

Read: Oil Prices Jump, Asian Markets Dip As Middle East Crisis Escalates

Oil prices have jumped 2% to their highest since January as the global shipping firms await a decision by Iran to close the Strait of Hormuz, through which one-fifth of the world's crude passes.

The surging oil price hit the currency markets too, with the rupee declining 17 paise to 86.72 against the US dollar.

Iran is the world's ninth-biggest oil-producing country. However, analysts suggest the bombing's impact on markets will likely be limited.

If the Strait of Hormuz is closed, it will impact Iran and their friend China more than anyone else, said Dr VK Vijayakumar of Geojit Investments Ltd, adding that the market still favours a 'buy of dips' strategy.

Read: After US Strikes, Iran Plans To Close Oil Corridor Strait Of Hormuz: Report

Devarsh Vakil of HDFC Securities said Nifty's support level has shifted upwards to 24,800 points.

US bomber jets had struck three key nuclear facilities - Fordow, Natanz, and Esfahan - in Iran early Sunday morning, after Tehran refused talks over its nuclear programme until Israel stopped its aggression.

Satellite images last evening showed damage to the three facilities, believed to be nurturing Tehran's nuclear ambitions, but experts claim of a possibility that Iran may have moved its nuclear stockpiles from the enrichment centres.

Reports indicate that Iran has been able to enrich its uranium up to 60%, near weapons-grade levels, but Tehran claims it's for peaceful purposes. The US and Israel don't agree and maintain that Iran cannot be allowed to possess nuclear weapons.