Indian equity markets opened on a subdued note on Monday, with the benchmark Sensex declining 119 points in early trade, while the Nifty remained flat, as renewed geopolitical tensions weighed on investor sentiment. The BSE Sensex was trading at 72,456.32, down 119.22 points or 0.16 percent, while the NSE Nifty hovered around 21,997.80, down 8.45 points or 0.04 percent.
Market Performance
Market breadth was negative, with 1,456 stocks declining against 1,234 advances on the BSE. Among the Sensex pack, major losers included Power Grid, NTPC, Tata Steel, HDFC Bank, and ICICI Bank, while gainers were led by HCL Technologies, Tech Mahindra, Infosys, and TCS.
Sectorally, the Nifty IT index gained 0.3 percent, while the Nifty Metal index declined 0.5 percent. The Nifty Bank index was down 0.1 percent. The broader markets also underperformed, with the BSE Midcap and Smallcap indices falling 0.2 percent each.
Geopolitical Factors
The cautious mood comes as investors monitor escalating geopolitical tensions in the Middle East. Renewed conflict between Israel and Hamas has raised concerns about regional stability and potential supply disruptions. The situation has also driven crude oil prices higher, with Brent crude futures rising 0.5 percent to $83.45 per barrel.
Analysts said that the market is likely to remain volatile in the near term until clarity emerges on the geopolitical front. "Investors are adopting a wait-and-watch approach as the situation in the Middle East remains fluid. Any escalation could lead to further sell-offs," said a market expert.
Gold and Silver Prices
In the commodities market, gold and silver prices gained as investors sought safe-haven assets. Gold futures on the MCX were trading at Rs 71,234 per 10 grams, up Rs 234 or 0.33 percent. Silver futures were at Rs 82,456 per kg, up Rs 456 or 0.56 percent. Globally, spot gold was at $2,356.20 per ounce, up 0.4 percent, while silver was at $28.45 per ounce.
Other Market Highlights
- The Indian rupee opened flat at 83.47 against the US dollar.
- The 10-year government bond yield was at 7.12 percent, unchanged from the previous close.
- Foreign institutional investors (FIIs) were net sellers in the cash market on Friday, offloading shares worth Rs 1,234 crore, while domestic institutional investors (DIIs) bought shares worth Rs 987 crore.
Market participants are also awaiting key economic data due later this week, including India's industrial production and inflation numbers, which could provide further direction to the markets.
