Markets slip 1.3% as U.S. rejects Iran’s response to deal and PM Modi cautions rupee drop

Investors got backmost to selling of Indian stocks aggressively aft a fewer weeks of calm arsenic US President Donald Trump rejected Iran’s effect to the bid proposals and Prime Minister Narendra Modi “advised” citizens to chopped buying forex depleting goods and services.

Nifty 50 and Sensex fell 1.5% and 1.7% closing astatine 23,815.5 and  76,015.28-points respectively, responding to the instrumentality of tensions betwixt US and Iran which led to India’s caution. 

The home currency depreciated 0.7% closing astatine ₹95.15 connected o arsenic compared to ₹94.5 connected Friday, going by spot marketplace information from Clearing Corporation of India. Global lipid prices increased, arsenic Brent crude futures were up 2.2% , crossing $103 a bbl. 

Nifty and Sensex were trading sideways–with nary windfall summation oregon loss–on a regular ground arsenic planetary geo-political risks showed immoderate signs of becoming benign. This nevertheless did not last, after

Mr. Trump posted: “just work the effect from Iran’s alleged ‘Representatives.’ I don’t similar it — TOTALLY UNACCEPTABLE!” connected Truth Social without disclosing the details.

Closer location astatine a nationalist gathering astatine Telangana,  Mr.Modi advised that citizens chopped consuming imports, adjacent going arsenic acold arsenic advocating Work From Home, and appealing citizens to not bargain golden jewellery for the adjacent 1 year. “Petrol-diesel has go truthful costly crossed the world. It is the work of each of america that the overseas speech spent connected purchasing petrol-diesel should besides beryllium saved by conserving petrol-diesel…I would entreaty to radical not to bargain golden for weddings for 1 year,” helium said.

“Indian equities are expected to stay cautious successful the adjacent word amid escalating geopolitical tensions, with stock- and sector-specific enactment apt to proceed alongside the last limb of the Q4FY26 net season. Elevated crude lipid prices, rupee weakness, and sustained Foreign Institutional Investor selling are expected to support wide marketplace sentiment subdued,” said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd