New Delhi [India], June 8 (ANI): Indian markets continued to tumble into the red on Monday morning as a combination of geopolitical tensions in West Asia and a sharp correction in global technology stocks triggered aggressive selling by foreign investors. The benchmark indices witnessed heavy losses, tracking a broader sell-off across Asian markets following weak cues from Wall Street over the weekend.

The BSE Sensex plummeted 821.73 points, or 1.11 per cent, to 73,421.61, while the NSE Nifty 50 dropped 286.00 points, or 1.22 per cent, to 23,080.70.

'Indian market futures are pointing to a weak start. The good news is that Indian stocks are at extremely oversold levels, which normally hit strong support zones and bounce back. FPIs remain sellers in India, and the combination of escalating tensions in the Iran war and selling in AI-sector stocks is likely to lead to more FPI selling across emerging markets, including India. Last week, FPIs sold a massive Rs 31,000 crore worth of equities. Expect a weak start and some margin calls leading to the unwinding of positions as markets move into heavily oversold territory, which could result in a bounce later in the week,' said Banking and Market expert Ajay Bagga.

The immediate trigger for the market downturn came from renewed military conflict between Iran and Israel. The escalation disrupted regional stability and sent oil prices surging, directly impacting import-dependent economies such as India.

'It has been 100 days since the Iran war began, although it was expected to end within two to four weeks, according to Trump. Iran fired missiles at Israel on Sunday,' said banking and market expert Ajay Bagga.

Bagga said US President Donald Trump called Israeli Prime Minister Benjamin Netanyahu and requested that Israel not retaliate to Iran's latest escalation.

'On Monday morning, Israel struck three Iranian cities with missiles launched from aircraft. Iran has threatened further escalation. Trump is trying to ensure the ceasefire holds. Oil prices have risen sharply, while markets across Asia have fallen this Monday morning,' Bagga added.

At the time of filing, Brent crude rose 3.45 per cent to USD 96.30 per barrel, while WTI crude gained 3.22 per cent to USD 93.46. Gold, meanwhile, slipped 0.48 per cent to USD 4,310.03.

'The cues from the US were weak, with the AI-driven rally that had supported markets through the Iran war and the Trump tariff turmoil of 2025 taking a breather. The Nasdaq 100 fell more than 4 per cent on Friday as AI-related market favourites came under pressure,' Bagga said.

Bagga noted that some analysts believe investors are raising cash to participate in the mega USD 77 billion SpaceX IPO.

The global risk-off sentiment led to steep losses across major regional indices. Japan's Nikkei 225 traded down 3.68 per cent at 64,137.00, Taiwan Weighted plunged 3.87 per cent to 43,392.78, and South Korea's KOSPI fell 4.81 per cent to 7,786.07.

Other indices, including the Straits Times, Hang Seng, SET Composite, Jakarta Composite, and Shanghai Composite, also recorded losses, while the GIFT Nifty showed a marginal gain of 0.30 per cent at 23,166.00.

'We believe 23,150 on the Nifty and 73,500 on the Sensex will act as key support levels for traders. As long as the market trades above these levels, the pullback formation is likely to continue. On the upside, the index could retest its 20-day and 50-day simple moving averages around 23,700. For the Sensex, the corresponding level would be around 75,000,' said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

However, Chouhan cautioned that a decline below 23,150 on the Nifty and 73,500 on the Sensex could intensify selling pressure. If these support levels are breached, the market could slip to the 23,000-22,800 range on the Nifty and 73,000-72,400 on the Sensex.

'A close below 22,800 on the Nifty and 72,400 on the Sensex could push the market towards its long-term support zone of 22,700-22,600 and 72,100-71,800, respectively,' Chouhan added. (ANI)