Indian equity markets are set for a sharply negative start on March 23, with Gift Nifty indicating a gap-down opening of over 300 points. Gift Nifty was trading at 22,832.50, down 304 points or 1.31%, signalling a weak undertone for domestic benchmarks ahead of the opening bell.
The negative cues come from a broad-based sell-off across Asian markets, where major indices were trading sharply lower. Japan’s Nikkei 225 declined 3.59%, South Korea’s KOSPI dropped 4.82%, Hong Kong’s Hang Seng fell 2.77%, while Taiwan Weighted and Singapore’s Straits Times index were down 2.59% and 1.86%, respectively, reflecting heightened risk aversion among global investors.
The sharp decline in global markets follows fresh escalation in geopolitical tensions after former U.S. President Donald Trump issued a strong warning to Iran, threatening to “obliterate” its power plants if the Strait of Hormuz is not fully reopened within 48 hours. The statement has intensified fears of a broader conflict in the already volatile US-Israel versus Iran war, with markets reacting negatively to the rising uncertainty.
Iran has responded with its own threats, warning of a complete closure of the Strait of Hormuz — a critical global oil supply route that handles nearly 20% of the world’s crude shipments — raising concerns of a severe energy shock and further disruption to global trade.
Adding to the geopolitical anxiety, Israel’s military leadership has indicated that the ongoing war against Iran is only at its “halfway point” and is expected to continue into the coming weeks, including through the Jewish festival of Passover. This signals prolonged uncertainty, keeping investors on edge globally.
The escalation has already triggered sharp volatility in oil markets, with crude prices remaining elevated amid fears of supply disruptions, further fuelling inflation concerns and dampening risk appetite across equities.
With global cues turning sharply negative and geopolitical risks intensifying, Indian markets are likely to remain under pressure in the near term, with investors closely tracking developments in the Middle East for further direction.