Stock market dips sharply even as UN Security Council reaches de-escalation consensus on Israel-Iran tensions

The Indian stock market kicked off trading on Monday with a sharp downward trend, echoing global anxieties over the escalating tensions in the Middle East following Iran's attack on Israel. At the opening bell, both the Sensex and Nifty indices experienced steep declines, reflecting investor unease amid geopolitical uncertainties.

The Sensex plummeted by 887.82 points, or 1.20 per cent, to 73,357.08, while the Nifty saw a drop of 181.75 points, or 0.81 per cent, to 22,337.65. Among the Nifty companies, 5 recorded advances, while 45 witnessed declines.

Noteworthy gainers for the day included Hindalco, ONGC, TCS, Nestle India, and HCL Technologies. However, major oil, ore and auto companies like BPCL, Coal India, Tata Motors, and Adani Enterprises were among the top losers.

Investors are currently navigating through uncertainties such as persistent inflation and interest rate hikes, and the Middle East crisis has introduced a fresh layer of volatility. As the trading day progresses, market participants remain attentive, closely monitoring geopolitical developments and their potential impact on global markets.

De-escalation the only consensus at UNSC meet

The United Nations Security Council emergency session, convened hastily at Israel's request 24 hours after Saturday's attack involving barrages of missiles and fleets of drones, revealed stark divisions among its members.

The meeting saw both Israel and Iran exchange accusations. The capture of the Israeli-owned ship, Aries, by Iran, was raised during the meeting, with several countries urging for the release of the crew, including Indians.

Israel's Permanent Representative called for the Council to condemn the attack and impose severe sanctions on Iran for its nuclear program. Iran's Permanent Representative justified Tehran's actions as self-defence under the UN Charter, citing Israel's previous strikes in Syria and the casualties incurred.

The US and Britain strongly condemned Iran's actions, while Russia defended Tehran.

Meanwhile, Secretary-General Antonio Guterres sounded a dire warning, stating that the "Middle East was on the brink", stressing the imperative of avoiding any further escalation in regional tensions. And despite the divisions within the Council, the consensus emerged around Guterres' plea.

“The message around the Council table was very, very clear that there should be no further escalation. Everybody was of the same opinion on this,” Council President Vanessa Frazier told reporters after the meeting.

(With inputs from ANI and IANS)