Dalal Street Tense, All Eyes On RBI MPC Decision, Sensex 500 Points Down, Nifty In Red

Indian equity markets began Thursday’s session on a weak note, with investors turning cautious amid renewed geopolitical tensions in West Asia and ahead of the Reserve Bank of India’s monetary policy decision.

The BSE Sensex rang the opening bell near 73,850, crashing nearly 500 points , while the NSE Nifty50 tanked more than 100 points to start trading under 23,300, as of 9:15 AM.

GIFT Nifty Signals Another Weak Opening

Early indicators pointed to continued weakness in domestic equities.

The GIFT Nifty traded at 23,335, down 181 points, suggesting that benchmark indices could extend losses at the open as global sentiment remains fragile.

In the pre-open session at around 9:05 AM, the Sensex slipped 313.29 points, or 0.42 per cent, to 74,032.88, while the Nifty fell 121.40 points, or 0.52 per cent, to 23,284.20.

The subdued start comes despite expectations of a busy trading session, with market participants closely tracking developments in the US-Iran conflict, crude oil prices and the RBI’s policy outcome due on Friday.

Investors appear reluctant to take aggressive positions ahead of key domestic and international developments, keeping risk appetite in check.

Fresh US-Iran Flare-Up Weighs On Global Sentiment

Geopolitical concerns resurfaced after tensions between the United States and Iran intensified once again.

According to reports, Iran launched strikes targeting Kuwait International Airport early on Wednesday. The development came a day after US Central Command said it had intercepted multiple Iranian ballistic missiles and carried out defensive operations against targets on Qeshm Island in the Persian Gulf.

At the same time, diplomatic efforts continued. US President Donald Trump said Iran had agreed not to acquire nuclear weapons, while Washington also indicated that Israel had agreed to a ceasefire arrangement with Lebanon provided Hezbollah halts its attacks.

Despite these diplomatic signals, the latest military developments have reignited concerns over regional stability and global energy supplies.

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RBI Policy Decision Becomes Key Domestic Trigger

While geopolitical developments dominate headlines, the focus at home is increasingly shifting towards the RBI’s Monetary Policy Committee (MPC) meeting.

The central bank’s policy announcement on Friday is expected to be the most significant domestic event of the week. Investors will closely analyse the RBI’s outlook on inflation, growth, liquidity conditions and interest rates amid evolving global uncertainties.

Any commentary on the impact of higher crude oil prices and external risks could influence market direction in the near term.

Asian Markets Decline As Growth Concerns Resurface

Equity markets across Asia-Pacific traded lower on Thursday morning as investors reacted to the latest developments in West Asia.

Japan’s Nikkei 225 declined 1.67 per cent, while South Korea’s Kospi fell 1.63 per cent, reflecting a broader risk-off sentiment across regional markets.

The renewed conflict has raised concerns about inflationary pressures and potential risks to global economic growth.

Wall Street Ends Lower

US markets also closed in negative territory overnight.

The Dow Jones Industrial Average fell 1.21 per cent, while the S&P 500 declined 0.74 per cent. The technology-heavy Nasdaq Composite lost 0.89 per cent, as investors assessed the impact of escalating geopolitical tensions and rising uncertainty.

Crude Oil Traders Assess Latest Developments

Oil prices remained volatile as markets evaluated both the military escalation and ongoing diplomatic efforts.

Brent crude futures pared some earlier gains and traded around $96.72 per barrel in early Thursday trade. While prices eased slightly, concerns about potential disruptions to energy supplies continue to keep crude elevated.

For India, sustained strength in oil prices remains a key risk, given its implications for inflation, the current account deficit and corporate profitability.

Also Read: RBI May Not Touch Rates This Week. Its Message Could Still Move Markets

Gold Gains As Investors Seek Safety

Safe-haven demand returned amid heightened uncertainty.

Gold futures rose nearly 0.6 per cent, while silver futures slipped marginally. The move reflects investors’ preference for defensive assets as geopolitical risks increase.