Sensex Loses 487 points, Nifty Drops 160 points at Open After Trump Warns of Fresh Iran Strike 

Mumbai, May 20: Domestic equity markets traded lower at the opening bell on Wednesday, with benchmark indices Sensex and Nifty slipping in early deals. Market sentiment remained jittery after US President Donald Trump said late Tuesday that he had called off strikes against Iran hours before they were due to begin. He later added that new strikes against Iran could come “very quickly”, if Tehran fails to strike a peace deal in coming days.

The Sensex fell 487.56 points or 0.65% to open at 74,713.29 and Nifty 50 came down 162.20 points or 0.69% to 23,455.80 as of 9:25 am trade.

Gainers & Losers

On the Nifty 50, Hindalco was the top performer in early trade. Its last traded price was ₹1,063.90, as against the previous close of ₹1048.30, up 1.49%. TCS climbed 0.38% to an LTP of ₹2,336 from the previous close of ₹2,327.10. Infosys gained 0.23% to ₹1,199.70 from ₹1,196.90. Cipla added 0.09% to touch ₹1,411.10 against the previous close of ₹1,409.80 and Wipro rose 0.04% to ₹195.24 from its previous close of ₹195.17.

Tata Steel was the top loser on Nifty50 in early deals. Its price traded at ₹203.25, down 2.89% from its previous close of ₹209.29. BEL came down 2.22% to ₹413.55 from its previous close of ₹422.95. Mahindra & Mahindra slipped 1.71% to ₹3,039.50 from ₹3,092.30. Eternal moved down 1.64% to ₹243.15 from ₹247.21. Nestle India shed 1.63% to ₹1,408 from a previous close of ₹1,431.40.

Broader Markets

All broader market indices traded in the red, as sentiment remained weak amid the ongoing US-Iran tensions. Nifty Midcap 100 came down 0.69% to 60,601.25. Nifty Smallcap 100 index fell 0.94% to 17,695.80 and Nifty 500 declined 0.75% to 22,353.40.

Sectoral Markets

All sectoral indices traded in the red barring IT index. Nifty IT rose 0.13% to 29,345.40. Nifty Pharma gained 0.33% to 24,950.50. Nifty Healthcare Index ticked up 0.12% to 15,848.30. Nifty PSU Bank index fell the most among key sectoral indices coming down 1.32% to 7,831.45. Nifty Auto declined 1.27% to 25,373. Nifty Realty index was down 1.69% to 749.80.

Middle East Conflict

The overhang from the Middle East continues to weigh on global risk appetite, with President Trump revealing he had been within an hour of ordering military action before pulling back, and warning of fresh strikes unless Iran agrees to a deal in coming days. Iran has proposed a peace plan that includes reparations for war damage and the withdrawal of US troops, though Washington has yet to formally respond.

Adding a fresh political dimension, the US Senate advanced a war-powers resolution — in a 50-47 procedural vote that would compel Trump to seek Congressional authorisation to continue the conflict, with four Republicans breaking ranks to support it. Oil traders remain on edge as Strait of Hormuz disruptions show little sign of abating, keeping crude prices at elevated levels. Even a peace deal, analysts warn, may not quickly restore pre-war supply levels to the market.

Asian & US Markets

Asian markets were broadly in the red, with the Nikkei 225 falling 1.30% to 59,764.16 and the Hang Seng Index declining 0.54% to 25,659.46. US markets also closed lower overnight, with the Dow Jones Industrial Average shedding 0.65% to 49,363.88 and the S&P 500 slipping 0.67% to 7,353.61.

Oil Prices Eases

Oil prices eased modestly in early Asian trade on Wednesday after Trump expressed confidence the Iran war would end “very quickly”, though markets remained cautious. Brent crude slipped 0.4% to $110.83 a barrel, while US West Texas Intermediate futures fell 0.3% to $103.88. Both benchmarks had already retreated nearly a dollar on Tuesday on signals of incremental diplomatic progress, though analysts cautioned that supply recovery will be slow even if peace is achieved.

Tuesday Session

Indian benchmarks settled lower in Tuesday’s session after a volatile day of trade in which gains in IT stocks failed to offset weakness in private banks and select consumption counters. The BSE Sensex closed down 114.19 points or 0.15% at 75,200.85, while the Nifty 50 ended 31.95 points or 0.14% lower at 23,618.00. Broader market sentiment held up better, with midcap and smallcap indices outperforming the benchmarks, rising 0.9% and 1.2% respectively.

Source:

• https://www.nseindia.com/market-data/live-market-indices
• https://www.nseindia.com/market-data/top-gainers-losers