Nifty, Sensex Tumble After US-Iran Peace Talks Fail

Indian stock markets fell on April 22 after US and Iran failed to reach an agreement in Islamabad, Pakistan to end the war. Investors feared that geopolitical tensions could drag on even as US extended the ceasefire with Iran.

The Nifty fell nearly 0.8 per cent to 24,378.45 while the Sensex tumbled nearly 1 per cent to 78,543.53 on April 22. Investors were cautious of US President Donald Trump’s announcement of an indefinite extension of ceasefire with Iran.

The earlier placed deadline on ceasefire was supposed to expire on April 22. Trump said that the ceasefire will be in place until Tehran could present a "unified proposal" to move peace negotiations forward. Peace talks scheduled for April 21 between US and Iran in Islamabad failed as Iran backed out of further negotiations with the US citing the blockade of Strait of Hormuz as a violation to the ceasefire agreement. Meanwhile Trump announced the extension of a ceasefire with no signs of any US delegation departing for Pakistan.

The Brent crude oil futures rose and traded above $98 per barrel. Meanwhile the US dollar was around a week-high level as investors opted for the safe haven asset amid geopolitical uncertainty. The US dollar index traded at 98.39 against its peers. Meanwhile, the Indian rupee continued to slide, trading at 93.76 against the dollar on April 22.

Asian markets also traded slightly lower, with the Indian markets also tracking the fall in early trade. However, in domestic markets, broader markets outperformed the benchmark indices. The Nifty Microcap and Smallcap indices were around 0.4 per cent higher, while the Nifty Midcap was trading around 0.1 per cent lower on April 22.

(This is a developing story. More updates to follow)