Sensex, Nifty witness sharp fall amid Iran-Israel tensions

Benchmark stock market indices saw a major downturn following Iran's retaliatory strike on Israel before closing on Monday.

This downturn affected most indices, with many stocks closing in the red.

The S&P BSE Sensex declined by 1.14% to 73,399.78, while the NSE Nifty50 experienced a 1.1% fall, settling at 22,272.50.

The downturn resulted in significant losses for investors, with 44 out of the Nifty50 stocks and 12 out of the 13 major sectors experiencing declines.

"The escalation in the potential conflict between Iran & Israel is a serious development and will likely adversely impact oil pricing. The Indian markets will be pressured over the short term as well. However, the Indian economy’s strong fundamentals and growth trajectory remain firmly in place over the long term," said Samir Bahl, CEO - Investment Banking, Anand Rathi Advisors.

Small-cap stocks fell by 1.73%, and mid-cap stocks declined by 1.57%, after showing better performance compared to the benchmarks earlier in April.

ONGC and Hindalco were the top gainers in the Nifty50 list.

ONGC surged 5.33% due to Jefferies' optimistic coverage and high price target, while Hindalco rose 2.35% following global aluminium price increases due to trading restrictions on new Russian commodities by the U.S. and UK.

However, amid the downfall in the market, analysts view this as a good moment for long-term investors with a strong risk appetite to consider entering the market.

"The Sensex is down significantly in the last few days from 75124 levels to 73417 levels, almost 1700+ points profit booking from the higher levels, indicating a market correction. This could be a good time to enter for long-term investors with a strong risk appetite," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.