The immediate trigger for the downturn was the sharp escalation of tensions in the Middle East, which pushed global crude oil prices higher. Global crude oil prices have rallied sharply in early March amid escalating tensions in the Middle East. With global markets also reacting negatively to geopolitical headlines, Indian equities moved broadly in line with the risk-off trend seen across emerging markets. The broader takeaway from Monday’s session is that external shocks continue to exert a strong influence on domestic markets. In the near term, volatility is likely to remain elevated, with traders expected to adopt a cautious approach.
