Stock Markets Likely To Open Lower, Brent Crude Jumps 2.87% To $72.87 Amid Middle East Crisis

Mumbai: Indian stock markets are expected to react negatively on Monday as tensions in the Middle East sharply increase. The United States and Israel carried out attacks on Iran over the weekend. Iranian state media reported that Iran’s Supreme Leader, Ali Khamenei, was killed in the strike.

Experts say this sudden escalation has made global investors nervous. Markets usually fall when geopolitical risks rise, especially when oil-producing regions are involved.

Impact on Oil and India

Brent crude oil prices jumped 2.87 percent to USD 72.87 per barrel after the news. Higher oil prices are a concern for India because the country imports around 85 per cent of its oil needs.

If crude prices remain high for a long time, it could increase inflation and affect India’s fiscal balance. It may also delay interest rate cuts. Analysts warn that this external shock comes at a time when markets are already technically weak.

Market Sentiment Remains Fragile

According to Santosh Meena of Swastika Investmart Ltd, markets are likely to open with a cautious to negative trend. He said investors will also react to domestic data such as Q3 GDP numbers, auto sales, IIP and PMI figures.

VK Vijayakumar of Geojit Investments Limited said the near-term impact will clearly be negative. Over the medium term, market direction will depend on how long the conflict continues.

Other Factors to Watch

Global economic data from the US and China will also influence investor mood. The movement of Foreign Institutional Investors (FIIs) will remain an important factor for market direction.

Equity markets were already under pressure last week. The BSE benchmark index fell 1,527.52 points (1.84 per cent), while the Nifty dropped 392.6 points (1.53 per cent).

Markets will remain closed on Tuesday due to the Holi holiday, making it a shorter trading week.

Overall, analysts expect higher volatility in the coming days as investors closely watch geopolitical developments and oil prices.