Stocks drop as geopolitical tensions rise

The Sensex plummeted over 800 points due to Middle East tensions on Monday, with the Nifty also experiencing a significant drop. The escalating conflict between Iran and Israel has impacted oil pricing and investor sentiment in India.

According to Samir Bahl from Anand Rathi Advisors, the short-term market pressure is expected due to the geopolitical tensions. However, the Indian economy’s long-term growth prospects remain strong.

Vinod Nair from Geojit Financial Services highlighted that the US inflation and geopolitical tensions have led to a pessimistic market sentiment, particularly affecting midcap and smallcap indices.

Despite the negative trend in Indian markets, European markets opened positively as oil prices decreased. Market participants anticipate a de-escalation of tensions in the Middle East through diplomatic efforts.

Technical Analyst Rupak De from LKP Securities mentioned the bearish sentiment in the market, with the Nifty dipping below crucial moving averages and showing a bearish crossover in the Relative Strength Index. However, a significant decline isn’t expected at the moment.