Australian equity markets started the week on a downbeat note, with the ASX 200 index sliding 0.91% to 8,665 by late morning. The decline was broad-based, with eight of the 11 major sectors trading in negative territory. Investor sentiment was weighed down by renewed geopolitical uncertainty after US President Donald Trump rejected Iran's peace proposal, labeling it 'unacceptable.'
Healthcare Sector Hit Hard by CSL's Outlook Revision
The healthcare sector bore the brunt of the selloff, tumbling 8.06%. The decline was largely driven by a staggering 18.25% plunge in CSL Limited's shares after the biotech giant revised its fiscal year 2026 guidance and announced a $5 billion impairment charge. This marks one of the most significant single-day drops for the stock in recent memory, raising concerns about the company's near-term growth prospects.
In contrast, the energy sector emerged as the sole outperformer, buoyed by gains in oil and gas majors Woodside Petroleum and Santos. The sector's resilience reflects the direct benefit of rising crude oil prices amid the US-Iran standoff, which has pushed Brent crude above $105 per barrel.
Standout Performers and Economic Data Ahead
Among individual stocks, Metcash surged 8.39% and Dyno Nobel jumped 8.13% after reporting a 39% rise in first-half earnings. These gains provided some relief against the broader market weakness. Market participants are now awaiting the release of March building approvals data from the Australian Bureau of Statistics, which could offer further clues on the health of the domestic economy.
Global Market Contagion: Indian Indices Plunge
The risk-off mood extended to Asian markets, with Indian benchmarks suffering severe losses. The Sensex plummeted over 1,000 points to 76,323, while the Nifty fell 303 points to 23,873. The selloff erased nearly Rs 6 lakh crore in market capitalization, triggered by a sharp spike in crude oil prices following the breakdown of US-Iran talks. All major sectors in India traded in the red, with consumer durables and financial stocks leading the decline. The Indian rupee weakened by 139 paise against the US dollar, and foreign institutional investors offloaded shares worth ₹4,110.60 crore.
Prime Minister Narendra Modi's call for austerity, urging citizens to reduce consumption of petrol, gold, and fertilizers, added to the bearish sentiment. Analysts expect defensive sectors like pharmaceuticals to hold up relatively better, while oil-dependent industries face continued pressure.
Gold Prices Remain Steady Amid Safe-Haven Demand
In the precious metals market, gold prices in major Indian cities showed minor variations, reflecting ongoing safe-haven demand. In Delhi, 22-carat gold stood at Rs 1,11,832 per 8 grams, while 24-carat gold was at Rs 1,21,992. Mumbai and Hyderabad recorded slightly lower rates, while Chennai saw the highest prices at Rs 1,13,192 for 22-carat and Rs 1,23,488 for 24-carat gold.
The broader market context remains dominated by geopolitical risks, with investors closely watching developments in the Middle East. The combination of rising oil prices, a stronger US dollar, and heightened uncertainty is likely to keep global equity markets volatile in the near term.
