Sensex, Nifty slip after early gains amid geopolitical concerns

Indian equity benchmarks gave up early gains to trade lower on Monday, as rising geopolitical tensions and surging crude oil prices dampened investor sentiment.

The 30-share BSE Sensex slipped 150 points, or 0.21 per cent, to 73,168 in early trade. The Nifty 50 also declined 42 points, or 0.19 per cent, to 22,670, reversing initial optimism seen at the opening bell.

Markets had begun the session on a mildly positive note, with the Sensex rising 158 points to 73,477.53 and the Nifty opening 67 points higher at 22,780. However, gains proved short-lived as caution prevailed amid escalating tensions involving Iran, Israel and the United States.

Selling pressure was visible across several heavyweight stocks, including Kotak Mahindra Bank, Tata Steel, Sun Pharma, Bajaj Finance, Mahindra & Mahindra, JSW Steel and Dr Reddy’s Laboratories, which declined by up to 2 per cent.

Sectoral indices initially traded in positive territory, 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. Auto, financial services and IT stocks also saw modest buying interest in early trade.

Broader markets showed some resilience, with the Nifty 100, Nifty 200 and Nifty 500 indices advancing by up to 0.31 per cent. Midcap and smallcap stocks also recorded limited gains.

However, weakness was observed in select sectors, with the Nifty Metal index declining 0.22 per cent, while pharma and realty stocks traded marginally lower.

Market volatility remained elevated, with the India VIX rising more than 2 per cent, reflecting heightened investor caution. Analysts said sentiment continues to be influenced by geopolitical developments, particularly tensions surrounding the Strait of Hormuz, a critical global oil supply route.

Crude oil prices surged sharply, adding to concerns. Brent crude climbed nearly 2 per cent to $111.23 per barrel, close to a 52-week high, while US WTI crude futures jumped 3.53 per cent to $115.48.

Foreign institutional investors continued their selling trend in the previous session, offloading equities worth Rs 9,931 crore, while domestic institutional investors provided support with purchases exceeding Rs 7,200 crore.

Global cues remained mixed. In Asia, Japan’s Nikkei traded about 1 per cent higher, South Korea’s Kospi gained nearly 1 per cent, while Hong Kong’s Hang Seng slipped around 1 per cent.

On Wall Street, the previous session ended with modest gains, with the S&P 500 rising 0.11 per cent to 6,582.69 and the Nasdaq advancing 0.18 per cent to 21,879.18.

Market participants are now closely watching upcoming domestic triggers, including the Reserve Bank of India’s monetary policy decision, while any signs of easing geopolitical tensions could help stabilise sentiment.

With IANS inputs