The benchmark Indian equity indices, Sensex and Nifty 50, are expected to open on a negative note on Monday, tracking weak global cues and rising geopolitical tensions in the Middle East.
Investor sentiment remains cautious as escalating conflict between the United States and Iran, along with concerns over energy supply disruptions, continue to weigh on global financial markets.
In the previous trading session on March 20, 2026, the Nifty 50 closed at 23,114.50, gaining 112.35 points or 0.49%, while the Sensex ended higher by 325.72 points or 0.44% at 74,532.96.
Gift Nifty was trading at 22,845.5, down 291 points or 1.26% from its previous close, indicating a likely gap-down opening for domestic indices.
Asian equity markets declined sharply, with indices in Australia and New Zealand falling by 1.7% and 1.1%, respectively, in early trade. Japan’s Nikkei futures also indicated weakness, trading significantly below their previous cash close.
The decline comes amid intensifying geopolitical tensions between the United States and Iran, with fears of prolonged conflict disrupting global energy supplies.
Oil prices have witnessed significant volatility, surging nearly 55% over the past month due to concerns over supply disruptions, particularly around the strategically crucial Strait of Hormuz.
Brent crude was trading near $111.82 per barrel, while US crude hovered around $98.01, reflecting continued uncertainty in energy markets.
Rising energy costs have also triggered sharp increases in fuel, shipping and fertiliser prices, raising concerns about global inflation and economic stability.
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US equity futures traded marginally lower, with S&P 500 futures down 0.1% and Nasdaq futures declining 0.2%, as investors assessed the broader impact of geopolitical risks and elevated oil prices.
Surging inflationary pressures driven by rising energy prices have led markets to reassess expectations for interest rate cuts. Investors are increasingly pricing in the possibility of rate hikes across major economies.
Bond yields have risen sharply, with the US 10-year Treasury yield climbing to 4.3856%, reflecting tightening financial conditions and increased borrowing costs.
The US dollar has strengthened amid market volatility, supported by its status as a safe-haven asset and the country’s position as a net energy exporter.
Weak global cues, rising oil prices and escalating geopolitical tensions are likely to keep Indian markets under pressure in the near term. Investors are expected to remain cautious as they monitor developments in global energy markets and central bank policy outlook.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 23, 2026, 8:01 AM IST
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