Markets bleed before Trump announces 5-day ceasefire

Sensex down 1,800 pts; investors lose ¥48.3 lakh cr in 15 sessions Bond yields climb to 1-year high; rupee at new low

- KISHOR KADAM CHRISTINA TITUS

THE DOMESTIC MARKETS took another big hit on Monday, with benchmark indices falling over 2%, as the crisis in the West Asia deepened. However, by the end of the day, hopes of a recovery emerged after US President Donald Trump announced a five-day pause in the war against Iran.

In a social media post, Trump said the US and Iran had engaged in “very good and productive” discussions aimed at a complete resolution of hostilities in West Asia. “I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period,” he said. However, Iran rejected Trump’s claims of “productive talks,” calling them part of efforts to cool energy prices.

Brent crude prices were quick to react and plunged 14.4% to $96 per barrel before recovering to trade near $103 per barrel while the Gift Nifty futures jumped 783 points, or 3.49%, higher at 23,248.

Earlier in the day, the Sensex fell 1,836.57 points, or 2.46%, to close below the 73,000 mark at 72,696.39. The Nifty plunged 601.85 points, or 2.60%, to end at 22,512.65. Broader indices underperformed the benchmarks, with the BSE Midcap and BSE Smallcap indices declining 3.86% and 4.08%, respectively. The India VIX Index surged 17.17% to 26.73 —its highest closing level since June 4, 2024—indicating heightened market volatility.