Stock Market: Sensex, Nifty 50 crash in early trade as Middle East crisis deepens

New Delhi: Amid rising Middle East tensions and turmoil in global market, the Indian stock market noticed a strong selloff on Monday morning trade. Nifty50 and BSE Sensex crashed in opening trade and impact was also seen on crude oil prices.

How did the market open?

The Sensex opened 2743, or 3.34 per cent lower at 78,543.73, but pared losses quickly. It traded 830 points, or 1.02 per cent, down at 80,457 around 10 am. 

The Nifty 50, crashed over 500 points, or more than 2 per cent, to hit an intraday low of 24,645, but pared losses swiftly, trading 262 points, or 1.04 per cent lower at 24,917 around 10 am.

In the first few minutes of Monday trade, investors lost more than Rs 8 lakh crore as the overall market capitalisation of BSE-listed firms dropped to Rs 455 lakh crore from Rs 463.50 lakh crore in the previous session.

What about oil?

Oil prices climbed sharply in Asian markets on Monday and shares slid after United States and Israeli strikes on Iran heightened fears of a wider conflict in the Middle East and potential disruption to global energy supplies. 

Brent crude sharply jumped in early trading on Monday and then eased back. Brent climbed 7.5 per cent to $78.34 a barrel, while US crude surged 7.3 per cent to $71.88 per barrel. Gold rose 1.5 per cent to $5,358 an ounce.

Did OPEC+ agree to increase output?

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+ on Sunday decided in a recent meeting to increase oil production by 206,000 barrels per day in April, amid rising conflict concerns.

What about gold and silver price?

Gold and silver prices surged on Monday, as investors moved toward safer investment options in response to escalating military tensions after the US and Israel launched strikes on Iran.

Silver and gold exchange-traded funds recorded sharp gains of up to 18 per cent.