Indian benchmark indices opened sharply lower on Monday as escalating tensions between the US and Iran pushed crude oil prices higher, triggering broad-based selling across sectors.
The Sensex dropped nearly 943 points, or 1.22 per cent, to touch an intraday low of 76,384 during early trade. The Nifty also fell 280 points, or 1.15 per cent, slipping below the 24,000-mark to 23,897.
Market sentiment weakened after hopes of a breakthrough in the ongoing US-Iran conflict faded. US President Donald Trump rejected Iran’s response to a proposed peace deal, calling it “totally unacceptable” in a post on social media.
The renewed uncertainty pushed Brent crude prices above $105 per barrel. Brent crude rose 4.41 per cent to $105.76 per barrel, while US West Texas Intermediate (WTI) climbed 5.12 per cent to $100.31 per barrel.
All major sectoral indices traded in negative territory. Nifty Consumer Durables, Auto, PSU Bank, Private Bank, Oil & Gas and Chemicals indices declined up to 3 per cent.
Among the major losers on the Nifty were Titan Company, InterGlobe Aviation, Mahindra & Mahindra, Shriram Finance, Maruti Suzuki, Bajaj Auto, Bharti Airtel and Dr. Reddy’s Laboratories.
India VIX, the volatility index, also rose nearly 2 per cent to 10.7, reflecting growing nervousness among investors.
The Sensex had opened at 76,638.09, down 690.10 points or 0.89 per cent, while the Nifty opened 200 points lower at 23,970.10.
According to market experts, investors are now worried that prolonged geopolitical tensions and elevated oil prices could affect economic growth and widen India’s trade imbalance.
Analysts also pointed to Prime Minister Narendra Modi’s recent appeal to reduce consumption of fuel, gold, edible oil and chemical fertilisers, along with avoiding unnecessary foreign travel, as a sign of growing concern over pressure on the current account deficit.
Experts believe sectors linked to petroleum, fertilisers, aviation, hospitality and luxury consumption could remain under pressure, while defensive segments such as pharmaceuticals may show resilience.
Asian markets traded mixed during the session. Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index were down around 0.3 per cent each, while South Korea’s KOSPI gained more than 4 per cent. – IANS
