Domestic equity markets witnessed volatility on Monday, with benchmark indices BSE Sensex and Nifty 50 slipping in early trade after a mildly positive opening, amid rising geopolitical tensions linked to the Strait of Hormuz.
The 30-share Sensex declined 150 points, or 0.21 per cent, to trade at 73,168, while Nifty fell 42 points, or 0.19 per cent, to 22,670. The early gains were short-lived as selling pressure emerged across key stocks.
Shares of InterGlobe Aviation (IndiGo), Kotak Mahindra Bank, Tata Steel, Sun Pharma, Bajaj Finance, Mahindra & Mahindra, JSW Steel and Dr Reddy’s Laboratories declined by up to 2 per cent, weighing on the indices.
Earlier in the session, markets had opened on a positive note, with Sensex rising 158 points to 73,477.53 and Nifty gaining 67 points to 22,780.
Sectorally, indices were largely in the green during opening trade, led by banking and auto stocks. The Nifty PSU Bank index rose 0.51 per cent, while the Nifty Private Bank index gained 0.30 per cent. Nifty Auto, Financial Services and IT indices also traded higher.
Broader markets showed resilience, with Nifty 100, Nifty 200 and Nifty 500 indices advancing up to 0.31 per cent. Midcap and smallcap indices also registered modest gains.
On the downside, the Nifty Metal index declined 0.22 per cent, while Pharma and Realty indices were marginally lower.
Volatility remained elevated, with the India VIX rising over 2 per cent, reflecting investor caution amid global uncertainties.
Market sentiment remained fragile as investors closely tracked developments around the Strait of Hormuz, a critical global oil supply route. Concerns intensified after Donald Trump warned of strong action if Iran fails to meet a deadline to reopen the passage.
In the previous trading session, foreign institutional investors (FIIs) continued their selling trend, offloading equities worth ₹9,931 crore, while domestic institutional investors (DIIs) provided support by purchasing shares worth over ₹7,200 crore.
Crude oil prices surged sharply, adding to market concerns. Brent crude rose nearly 2 per cent to $111.23 per barrel, hovering near a 52-week high, while US WTI crude futures climbed 3.53 per cent to $115.48.
Across Asia, markets showed a mixed trend. Japan’s Nikkei gained around 1 per cent, while Hong Kong’s Hang Seng declined about 1 per cent. South Korea’s Kospi, however, traded nearly 1 per cent higher.
In the previous session, US markets ended marginally higher, with the S&P 500 rising 0.11 per cent and the Nasdaq gaining 0.18 per cent. (IANS)
