Summary of this article
Sensex opened over 800 points lower as West Asia tensions rattled markets
Crude oil surged over 4 per cent amid fears of supply disruptions
Asian technology stocks tumbled after a broad sell-off in global AI shares.
Rupee weakened against the dollar as stronger oil and US jobs data weighed sentiment
Stock Market Today: Equity markets opened weaker on June 8 as fresh escalation in West Asia conflict pushed crude oil prices higher, and a global sell-off in artificial intelligence-linked stocks weighed on investor sentiment.
The BSE Sensex opened with a gap down of 821.73 points, or 1.11 per cent, at 73,421.61. The NSE Nifty 50 started the session down 286 points, or 1.22 per cent, at 23,080.70.
Selling pressure was visible across the broader market as well. The Nifty Midcap 100 and Nifty Smallcap 100 declined more than 1.25 per cent each in early trade. The Nifty 500, which accounts for over 92 per cent of the total free-float market capitalisation of all NSE-listed companies, also slipped more than 1 per cent.
Wipro led the losses among Nifty 50 stocks, slipping more than 3.5 per cent in early trade. Hindalco, Bajaj Finance and Shriram Finance were also among the major losers, each falling over 2 per cent.
Selling pressure was widespread across sectors, with stocks such as Eternal, IndiGo, Asian Paints, Tata Motors, Trent, Mahindra & Mahindra, NTPC, Max Healthcare, Jio Financial Services, Tata Steel, Tata Consumer Products and Tata Consultancy Services declining between 1.5 per cent and 2 per cent.
Defensive pharma and healthcare names provided some support to the market. Sun Pharma, Dr Reddy's Laboratories and Apollo Hospitals traded higher, emerging among the few gainers on the benchmark indices.
Sectorally, losses were led by the realty, metal and auto indices. The Nifty Realty index fell 1.79 per cent, followed by Nifty Metal at 1.69 per cent and Nifty Auto at 1.60 per cent. Nifty IT declined 1.54 per cent, while Nifty Oil & Gas, Nifty Financial Services and Nifty FMCG lost 1.16 per cent, 1.21 per cent and 1 per cent, respectively.
Defensive sectors outperformed the broader market, with the Nifty Pharma and Nifty Healthcare indices gaining around 0.50 per cent each.
Nifty Bank was down more than 0.50 per cent, testing the 54,200 level.
Fresh Escalation In Iran-Israel Dampens Investor Sentiment
Investor sentiment were under pressure after fresh escalation over the weekend in the ongoing West Asia war, raising concerns about global oil supplies and pushing crude prices higher.
The latest tensions started in the night of June 7 after Iran launched missiles towards Israel in response to Israeli strikes in southern Lebanon. The attack drew attention because it was Iran's first direct strike on Israel since agreeing to a ceasefire with the US.
Israel said it intercepted the incoming missiles, while Iran's Revolutionary Guard claimed responsibility for a coordinated missile and drone operation targeting northern Israel. Israel earlier this morning responded with strikes on military targets in western and central Iran.
The situation became more concerning for markets as the exchange of attacks came just days after a US-brokered truce in Lebanon and at a time when efforts were underway to secure a broader peace deal in the region.
US President Donald Trump urged Iran to return to negotiations, saying, "You have shot your missiles. That's enough. Get back to the table and make a deal."
Crude Oil Prices Surge Over 4%
The immediate reaction was visible in the oil market. International crude oil prices jumped as much as 4.50 per cent in early trade on Monday as traders assessed the risk of supply disruptions from the oil-rich region. At around 10:30 AM, Brent crude futures were trading 4.24 per cent higher at $97.08 a barrel, while US benchmark WTI crude gained 4.17 per cent to $94.31 a barrel.
The latest spike adds to an already strong rally in crude prices. Since the US-Israel war with Iran began on February 27, crude oil prices have surged around 35-40 per cent.
Costlier crude is a concern for markets because it can add to inflation, raise costs for businesses and widen India's trade deficit, potentially affecting company profits and overall economic growth.
Global AI Sell-Off
Asian technology stocks extended their losses on June 8 after a broad sell-off in US AI-linked shares.
South Korea's Samsung Electronics fell up to 11.21 per cent, while SK Hynix declined 10.77 per cent, dragging the benchmark KOSPI lower. In Taiwan, TSMC slipped over 5.51 per cent and Foxconn tumbled 9.50 per cent.
Japan's Nikkei 225 was also down by 4.20 per cent, while China's CSI 300 tumbled 2.18 per cent.
The weakness in Asian markets came after a more than 4.50 per cent decline in the tech-heavy Nasdaq last week, which was was triggered by Broadcom's latest earnings report. Although the company beat quarterly revenue and profit estimates, it left its 2027 AI revenue guidance unchanged, disappointing investors who had been expecting a stronger outlook amid rapid growth in agentic AI.
The muted guidance sparked concerns that the pace of AI-related spending may not be accelerating as quickly as markets had anticipated, prompting investors to book profits in technology stocks that had rallied sharply on AI optimism.
Rupee Weakens Further
The rupee fell 17 paise to 95.35 against the dollar in early trade on June 8 as a stronger greenback and rising crude oil prices weighed on sentiment.
The dollar gained after US nonfarm payrolls rose by 1,72,000 in May, well above Reuters' estimate of 85,000, reinforcing expectations that the US Federal Reserve may keep interest rates higher for longer.
The domestic currency also came under pressure from a sudden jump in crude oil prices following renewed hostilities between Iran and Israel.
At the interbank foreign exchange market, the rupee opened at 95.35 against the dollar, compared with its previous close of 95.18. The USD/INR pair was trading at 95.22, up 0.29 per cent, as traders kept an eye on developments in West Asia and upcoming US economic data.
