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The opening bell today is among the most closely watched in recent months, with global markets rattled by escalating tensions in West Asia
Indian markets brace for volatility after the killing of Iran’s Supreme Leader Ali Khamenei in a US–Israel strike.
US-Iran War: The opening bell today is among the most closely watched in recent months, with global markets rattled by escalating tensions in West Asia. GIFT Nifty was down 235 points, or 0.93%, at 25,050, signalling a weak start for Indian equities as investors react to the sharp deterioration in the geopolitical landscape following US-Israel strikes on Iran and Tehran’s retaliation.
Across West Asia, markets traded deep in the red, reflecting heightened risk aversion. The weakness extended to Asia, where screens were awash in red amid fears of a broader regional escalation and potential disruption to global oil supplies.
On Friday, domestic benchmarks had already ended sharply lower. The NSE Nifty 50 fell 318 points, or 1.25%, to close at 25,178, while the BSE Sensex dropped 961 points, or 1.17%, to 81,287.
Tensions in West Asia Escalate
The conflict intensified after the US and Israel carried out strikes on Iran, reportedly killing Supreme Leader Ali Khamenei. An Iranian official told CNN that US President Donald Trump had crossed “a very dangerous red line.” Israel subsequently claimed it conducted fresh strikes “in the heart of Tehran,” while Iran launched retaliatory attacks, including strikes on US military bases and targets across the region.
The conflict has damaged key infrastructure, disrupted air hubs and threatened oil supply routes, raising concerns about prolonged instability.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the medium-term market impact will hinge on the duration of the conflict. “The market will react very negatively. In a weak market, upstream oil companies and defence stocks will do well,” he said, adding that the US and Israel could opt for a strategic pullback after significantly weakening Iran.
Crude Oil Surges
Crude prices spiked sharply on Monday morning as tensions flared. Brent crude jumped as much as 13% to around $82 per barrel before trimming gains to trade about 7% higher.
The US military said it struck an Iranian warship at a Gulf of Oman port, raising fears that Iran could retaliate by disrupting traffic through the Strait of Hormuz, a critical artery for global oil trade.
“Crude has spiked, and if prices remain elevated for an extended period, India’s balance of trade and balance of payments will be impacted since we import nearly 85% of our oil requirements,” Vijayakumar warned.
There are also unconfirmed reports about potential disruptions in the Strait of Hormuz. If the waterway is deemed unsafe for commercial shipping, prices could spike further. OPEC+ may respond by ramping up production in an attempt to stabilise markets.
Asian Markets Under Pressure
Asian markets opened sharply lower as risk-off sentiment dominated. Japan’s Nikkei 225 fell nearly 2% at the open, while the Topix dropped 2.1%. Hong Kong’s Hang Seng index futures were at 26,465, below the previous close of 26,630.54. South Korean markets remained closed due to a public holiday.
US Futures Slide
US stock futures declined overnight amid rising oil prices and increased demand for safe-haven assets. Dow Jones Industrial Average futures fell 571 points, or 1.2%. S&P 500 futures lost 1%, while Nasdaq 100 futures slipped more than 1%. Gold futures rose 2% as investors sought refuge in the precious metal.
Gold and Silver Rally
Gold prices surged as geopolitical tensions boosted safe-haven demand. The rate for 24-carat gold in India stood at Rs 1,62,190 per 10 grams, up nearly 2% from the previous day. In Delhi, 24-carat gold was priced at Rs 1,61,910 per 10 grams, while 18-carat gold was at Rs 1,21,642.5. In Dubai, 24-carat gold was quoted at Rs 1,49,590. On COMEX, gold traded at $5,372.20 an ounce, up 2.4%.
Silver prices also rallied sharply. In India, silver jumped 7% to Rs 2.8 lakh per kilogram. On COMEX, silver rose 1.83% to trade at $95 per troy ounce. The metal had previously hit record highs in January amid geopolitical tensions and speculative buying.
FII, DII Activity
Foreign institutional investors (FIIs) were net sellers of Indian equities worth Rs 7,536.36 crore on February 27, 2025, according to provisional NSE data. In contrast, domestic institutional investors (DIIs) were net buyers to the tune of Rs 12,292.81 crore, cushioning some of the selling pressure.
US Dollar and Rupee
The US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, rose 0.26% to 97.86. The index reflects the dollar’s relative strength against currencies including the euro, pound, yen and Swiss franc. The rupee depreciated 0.06% to close at 90.97 against the US dollar on February 27.
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March 02, 2026, 07:36 IST
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