Markets surrendered early gains Monday to close lower, with investor sentiment gripped by one overriding concern: Washington’s promised “economic D-Day” sanctions against Iran and Tehran’s counter-threat to choke oil flows through the Strait of Hormuz.The session underscored how a faraway geopolitical flashpoint can dominate trading on Dalal Street when energy prices are already elevated.The Nifty 50 closed at 24,219.05, down 32.95 points or 0.14 per cent, after briefly touching 24,313 in early trade and sliding to an intraday low of 24,144 before a partial recovery.The Sensex settled at 77,369.11, lower by 171.72 points or 0.22 per cent. Turnover on NSE’s cash market slipped roughly 1 per cent versus the previous session, pointing to subdued participation.“Caution dominated market sentiment as investors are awaiting fresh sanctions from the US on Iran,” said Vinod Nair, Head of Research at Geojit Investments, adding that sovereign bond yields moving higher on the back of the RBI’s recent hawkish stance also dampened risk appetite.Banking stocks bore the sharpest brunt, with the Nifty PSU Bank index shedding 0.9 per cent, the worst sectoral performer, as rising sovereign bond yields triggered mark-to-market losses.Private sector banks fared comparatively better but still weighed on the benchmark, given their significant index heft. On the other side, Nifty Metal gained 1.6 per cent, buoyed by firm global commodity prices across copper, aluminium, and zinc.Realty and IT indices also posted moderate advances. JSW Steel, Hindalco, and Tata Steel led gains among Nifty 50 stocks, while SBI Life, Adani Ports, and Bajaj Finance were the notable laggards.Broader markets were mixed. The Nifty Midcap 100 edged up 0.13 per cent, while the Nifty Smallcap 100 slipped 0.26 per cent. Market breadth stayed weak, with roughly 298 of the Nifty 500 stocks ending in the red and the advance-decline ratio skewed towards declines.On the commodity front, crude eased from recent highs as traders chose to await sanction details rather than react to headlines.Domestic crude futures fell close to 2 per cent to around ₹8,170 per barrel, while WTI eased toward $85. Brent remained near $92.Gold, by contrast, climbed to a three-month high, with COMEX Gold holding above $4,600 and MCX Gold sustaining above ₹1,60,000, driven by safe-haven buying on geopolitical uncertainty and bond-market jitters. Gold loan stocks, Muthoot Finance, Manappuram Finance, and IIFL Finance, all rallied as higher collateral values lifted lending sentiment.The rupee ended 6 paise lower at 95.70-95.74 against the dollar after a sharp intraday reversal. A strong opening, supported by robust FCNR(B) inflows, gave way as equity selling and a firming dollar wiped out early gains. The Dollar Index held near 98.90. Analysts see the currency consolidating in a 95.35–96.10 range near term.On the earnings front, a pocket of positivity: Nifty-500 companies posted 19 per cent year-on-year earnings growth in the first quarter of FY27, the strongest in 15 quarters, with smallcap earnings surging 35 per cent and midcaps 30 per cent.The week ahead carries several triggers. Monthly futures and options expiry on Tuesday is likely to keep volatility elevated. Beyond that, Federal Reserve Chair Jerome Powell’s address at the Jackson Hole symposium and US GDP and Core PCE data will be closely watched for signals on the interest rate trajectory.Domestically, further clarity on the Iran sanctions and any crude oil market reaction will set the tone. Analysts broadly see the Nifty confined to a 24,000–24,400 band in the near term, with a sustained move above 24,360 needed to open the door toward 24,600, while a break below 24,000 could expose the index to the 23,750–23,900 zone.Published on August 24, 2026