Nifty 50 slips 1.3% as Trump rejects Iran peace deal, crude spikes above $105

Indian equities opened the week on a weak note, with the Nifty 50 sliding 1.27% to 23,868 and the Nifty Bank tumbling 1.52% by mid-morning on Monday. The sell-off was broad-based — every major index from Nifty Midcap 100 to Nifty Next 50 fell over 1%.

The trigger is geopolitical. US President Donald Trump and Iran rejected each other’s latest peace proposals to end the war in the Middle East, keeping the Strait of Hormuz largely closed and raising doubts about the durability of a fragile ceasefire. US President Donald Trump via a Truth Social post overnight said that the the response from Iran officials on the deal proposal is completely unacceptable and that it is not appropriate.

Brent crude futures jumped more than 3% toward $105 a barrel as a result — a direct pressure point for India, one of the world’s largest oil importers.

Sector-wise, the damage was wide. Nifty Realty led losses at -2.92%, followed by PSU Banks at -1.92%, Auto at -1.72%, and Financial Services at -1.50%. Only Nifty Pharma managed to stay green, up a marginal 0.10% — a classic defensive trade in risk-off sessions. Nifty IT was virtually flat at -0.09%.

Markets had dipped over 1% last week as well, following the brief India-Pakistan military standoff, though the ceasefire announcement had sparked optimism of a gap-up recovery. That recovery is now being clouded by the renewed US-Iran uncertainty.

Rising crude, stalled Middle East diplomacy, and a diplomatically awkward Trump are proving to be a tough combination for Dalal Street today.