Mumbai— Indian stock markets began the week on a subdued note as escalating tensions in the Middle East weighed heavily on investor sentiment. The decline followed news that the United States had bombed three nuclear facilities in Iran over the weekend, signaling strong support for Israel in the ongoing regional conflict.
The geopolitical developments sparked caution among investors, leading to a dip in key benchmark indices on Monday. The Sensex fell 511.38 points, or 0.62 percent, to close at 81,896.79. During the session, the index fluctuated between an intraday high of 82,169.67 and a low of 81,476.76.
The Nifty 50 mirrored the downward trend, shedding 140.50 points, or 0.56 percent, to settle at 24,971.90. It had touched a high of 25,057 and a low of 24,824.85 during the day.
Despite the weakness in the large-cap segment, broader markets fared better. The Nifty Midcap 100 ended up 0.36 percent, while the Nifty Smallcap 100 gained 0.70 percent, showing resilience in the mid and small-cap space.
Among the 30 Sensex constituents, top losers included HCL Technologies, Infosys, Larsen & Toubro, Mahindra & Mahindra, Hindustan Unilever, and ITC, which fell between 2.28 percent and 1.21 percent. In contrast, Trent, Bharat Electronics, Bajaj Finance, Kotak Mahindra Bank, and Bajaj Finserv led the gainers, rising between 3.39 percent and 0.58 percent.
Sector-wise, the market showed mixed signals. Banking, auto, FMCG, and realty stocks ended in the red, while metals, consumer durables, pharmaceuticals, and media sectors posted gains. The Nifty IT index was the worst-performing sector, dropping 1.48 percent, dragged down by stocks such as Coforge and Persistent Systems.
Vinod Nair, Head of Research at Geojit Financial Services, noted that markets had previously rallied on hopes of easing tensions in the Middle East after the U.S. announced a two-week window to assess its involvement in the Israel-Iran conflict. However, the surprise U.S. airstrikes over the weekend shattered those expectations, pushing crude oil prices higher and triggering a pullback in domestic equities.
India’s volatility index, India VIX, which reflects market sentiment and fear, climbed 2.74 percent to 14.05, indicating heightened uncertainty among investors.
Although the Nifty saw a strong recovery from its gap-down opening, thanks to a brief dip in crude prices, the overall sentiment remained negative by session’s end.
Meanwhile, the Indian rupee weakened by 0.11 to close at 86.75 against the U.S. dollar as the dollar index approached the 99 mark. Jateen Trivedi of LKP Securities noted that the rupee remains technically weak below the 86 level, with the next support likely near 87. (Source: IANS)
