Stock Market Today: BSE Sensex, Nifty 50 Crashes As Iran-Israel Tensions, Oil Spike Rattle Investors – What Should You Do?

The Indian stock market opened on a negative note on June 23 and extended losses through the morning, dragged by sharp declines in IT stocks and OMC stocks also adding the heightened global tensions.

As of 10:20 AM, the Sensex had slumped by 835.98 points or 1.01% to 81,572.19, while the Nifty fell 248.55 points or 0.99% to 24,866.75.

Earlier at the opening bell, the Sensex was already down by over 500 points and the Nifty had dipped by 135 points. The market breadth remained negative, with 1,152 shares advancing, 2,055 declining, and 165 remaining unchanged.

IT Stocks Lead the Fall
Among the hardest-hit sectors were information technology and tech services. Stocks like Infosys, HCLTech, Wipro, and TCS were among the top losers on the Nifty index. Shriram Finance also saw significant declines.

Market participants attributed the sell-off in IT to concerns over global economic slowdown and risk-off sentiment due to geopolitical tensions in the Middle East.

Crude Oil Spike Raises Inflation Worries
The geopolitical tension between the US and Iran escalated after the US joined Israel in attacking Iran’s nuclear facilities over the weekend. This sparked a rally in crude oil prices, which surged to a five-month high, raising concerns over global energy supplies.

Energy stocks, however, saw some support. Nestle, ONGC, Bharat Electronics, Bharti Airtel, and SBI Life Insurance were among the gainers on the Nifty.

Sugandha Sachdeva, Founder of SS WealthStreet, said: “As the US has got involved in this Iran-Israel conflict directly by attacking three nuclear sites, it has raised concerns of a wider Middle East conflict. There are fears that crude prices could spiral higher as Iran is contemplating blocking the Strait of Hormuz… this could lead to a big spike in oil prices and wider ramifications for the global economy, potentially fueling inflation and derailing growth.”

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Key Levels To Watch Today 

She added that 24,800 remains a critical support for the Nifty and if it holds, we could see a revival in markets. However If that level is breached, we could see a further wave of selling in the market.”

Traders on Edge, Investors Cautious
Veteran market expert Ajay Bagga also weighed in on the volatility: “Regime change will not be easy, especially via an air war with no boots on the ground. If regime change remains the endgame, then we continue with these volatile markets. Otherwise, expect a détente soon, maybe within this week.”

He further added that while traders may find it nightmarish, disciplined SIP investors should stay the course.

Broader Market Sentiment Turns Risk-Averse
Globally, the mood is turning risk-averse. The dollar index rebounded, gold prices firmed up, and investors across emerging markets shifted toward safe-haven assets. The Indian markets are reacting to both local technical levels and external macro risks, making it a challenging day for bulls.

With volatility likely to persist and crude oil prices on the rise, investors are expected to tread cautiously in the days ahead. Analysts suggest closely watching 24,800 on the Nifty as a key pivot point. If it holds, a rebound may be possible; if breached, further downside could follow.