Indian markets slip in early trade amid renewed West Asia tensions

Indian equity markets opened lower on Monday as renewed tensions in West Asia unsettled investor sentiment, overshadowing otherwise positive global cues and strong banking sector earnings.

The benchmark BSE Sensex fell by around 232 points, or 0.29 per cent, to trade at 78,261 in early deals. Meanwhile, the Nifty 50 slipped more than 100 points, or 0.46 per cent, to 24,241, dragged down by selling in realty, metal and energy shares.

Among the early laggards were Hindalco Industries, HDFC Bank, HDFC Life, Bajaj Finserv and Kotak Mahindra Bank.

Market sentiment was dented after Iran imposed fresh restrictions on shipping through the Strait of Hormuz, a critical global oil transit route. The move reignited concerns about supply disruptions, pushing crude oil prices sharply higher.

Brent crude rose over 7 per cent to trade near $96.87 per barrel, while WTI crude surged nearly 9 per cent to around $91.20.

Analysts said that while broader market momentum remains intact, investor confidence continues to hinge on geopolitical stability. They noted that markets may stay reactive in the near term, with trading opportunities likely to be driven by short-term positioning rather than a clear directional trend.

On the institutional front, foreign institutional investors (FIIs) were net buyers in the previous session, purchasing equities worth ₹683 crore. In contrast, domestic institutional investors (DIIs) booked profits worth Rs 4,721 crore.

Despite the early decline, global market cues remained supportive. Asian indices, including Nikkei 225, Hang Seng Index and KOSPI, were trading up to 1 per cent higher.

Overnight, US markets ended on a strong note, with the S&P 500 gaining 1.2 per cent and the Nasdaq Composite rising 1.52 per cent.

Market participants expect a cautious trading session ahead, with the possibility of consolidation at higher levels as investors monitor developments in the West Asia.

With IANS inputs