Sensex defies war fears! Indian markets surge even as US-Iran conflict reignites

Markets open strong

The BSE Sensex gained nearly 200 points at the opening bell before extending its rally to over 500 points in early trade, reflecting resilient investor sentiment.

The NSE Nifty 50 also advanced more than 150 points, reclaiming the 24,100 mark as buying emerged across key sectors.

Market participants said domestic investors appeared to focus on strong institutional inflows and expectations of economic resilience, even as geopolitical risks remained elevated.

Oil prices surge amid Strait of Hormuz concerns

Crude oil prices climbed sharply after renewed military action in the Gulf reignited concerns over the security of the Strait of Hormuz, a strategic shipping route through which nearly one-fifth of the world's oil supply passes.

The United States claimed it had carried out strikes on around 90 Iranian military targets, saying the operation was aimed at safeguarding freedom of navigation and keeping the vital waterway open.

Any prolonged disruption in the Strait of Hormuz could significantly impact global energy supplies and push crude prices higher, analysts warned.

Fresh escalation between US and Iran

The latest flare-up comes after a fragile ceasefire appeared to collapse.

According to reports, Iran launched retaliatory attacks targeting US military installations in Bahrain and Kuwait following the American strikes. While the extent of the damage and casualties remains unclear, the exchange has heightened fears of a wider regional conflict involving multiple Gulf nations.

The renewed hostilities have also raised concerns over maritime security, regional energy infrastructure and global trade routes.

Investors remain watchful

Despite the geopolitical uncertainty, Indian equities remained resilient in early trade. However, analysts cautioned that volatility could increase if the conflict intensifies further or if crude oil prices continue their upward trajectory.

India, which imports more than 80 percent of its crude oil requirement, remains particularly sensitive to sustained increases in global oil prices. A prolonged spike in crude could fuel inflation, widen the country's current account deficit and put pressure on the rupee.

Investors are expected to closely monitor further developments in the US-Iran conflict, movements in global crude prices and reactions from major world powers in the coming sessions.