Sensex, Nifty Drop as Trump’s Speech Lacks Timeline for End of War

BSE Sensex fell by 1,518.29 points, or 2.08 percent, to 71,616.03 points at 09:16. Similarly, the NSE Nifty 50 index decreased by 462.50 points, or 2.04 percent, to 22,216.90 points. This decline followed a brief recovery in the previous session, in which Nifty gained 348 points and Sensex gained 1,187 points.

Market experts attributed the volatility to the lack of a clear ceasefire in the Middle East. Market and banking expert Ajay Bagga said Trump’s speech offered nothing new, missing a ceasefire announcement and pointing to ongoing tensions with Iran, including possible prolonged military action and uncertainty over global oil routes.

Another expert, Vivek Karwa, stated that the markets reacted negatively because the expectations for a major announcement were not met. He added that the situation points to an ongoing conflict and volatility is likely to continue in the near term.

The impact was also seen in global commodity markets, with crude oil prices rising during Trump’s speech. Rising energy costs have further put pressure on Indian stocks; Brent and WTI crude oil approached $103-105 per barrel.

Karwa said the gains in the previous session were probably due to value buying and not a sign of recovery. He warned that markets could remain unstable until there is clarity on a resolution to the dispute.

Despite the recent gap widening, the short-term market trend remains weak. Analysts say the indices are now testing key support levels that will determine their direction for the rest of the week.

Shrikant Chouhan, Head of Equity Research, Kotak Securities, said 22,500/72,500 and 22,250/72,000 levels are important support zones. If the market remains above these levels, a pullback towards 22,900-23,000 or 73,800-74,200 is possible. However, a decline below the 22,250/72,000 level could drag the indices towards the 22,100-22,000 or 71,500-71,200 levels.