Sensex crashes 800 pts, Nifty below 22,850 as 48-hour US ultimatum rattles markets

The domestic equity markets started the week on a weak note on Monday, witnessing heavy selling pressure as investors shifted towards safer assets amid rising geopolitical tensions between the United States and Iran.

The market sentiment turned cautious after US President Donald Trump issued a stern 48-hour ultimatum to Tehran to fully reopen the Strait of Hormuz, triggering fears of an intensified conflict in the coming days.

Reflecting the nervousness, the Nifty 50 index opened at 22,824.35, declining by 290.15 points or 1.26 per cent, while the BSE Sensex opened at 73,732.58, down by 800.38 points or 1.07 per cent.

Market experts highlighted that global uncertainty is driving investors away from risk assets.

Ajay Bagga, Banking and Market Expert, told ANI, "The global financial landscape is waking up to a Monday morning of extreme volatility as the US-Iran conflict enters a critical, potentially escalatory phase. Investors are fleeing to the safety of the dollar while dumping risk assets across the board. US money market funds AUM has crossed USD 8 trillion as the flight to safety accelerates."

He noted that the immediate trigger behind the panic is the looming deadline set by the US President. "Over the weekend, the President issued a stern 48-hour ultimatum to Tehran: fully reopen the Strait of Hormuz--currently operating at just 5 per cent of its pre-war volume--or face the 'obliteration' of Iran's power grid," he added.

In the commodities market, Brent crude hovered near USD 112 per barrel, while WTI stood at USD 98.50. Despite supply concerns, prices remained volatile as traders balanced fears of supply disruptions against the possibility of a global demand slowdown.