Indian benchmark indices are poised for a sharp decline on Monday, with the Gift Nifty trading at a significant discount to Friday's close.
The pre-market indicator hovered around the 24,056 level, marking a drop of nearly 186 points from the previous session's close.
This pricing action signals a gap-down start for the broader market, driven by escalating tensions between the United States and Iran and growing concerns over shipping security in the Strait of Hormuz.
The repricing reflects a swift return of risk aversion among investors, halting the positive momentum that had characterized the previous trading week.
Global markets have weakened in response to the geopolitical flare-up, with fears that disruptions to oil transit through the Strait of Hormuz could trigger a surge in crude prices.
For India, a major importer of energy, such a spike would directly impact the trade deficit and inflationary pressures, adding headwinds for equity valuations.