MUMBAI: Indian benchmark indices opened sharply lower on Monday, weighed down by escalating tensions between the US and Iran that pushed Brent crude prices above $90 a barrel. Both the Sensex and Nifty began the week with a gap-down opening, with the Sensex falling more than 500 points and the Nifty trading around the 24,200 level.
The Nifty was trading at 24,208.50, down 125.80 points, or 0.52 per cent while the Sensex was trading at around 77,613.16, down 538.29 points, or 0.69 per cent, at the time of reporting.
On the BSE, Tech Mahindra, ICICI Bank, SBI, HCL Tech, Sun Pharma, Reliance, Infosys, TCS, ITC among others were the top gainers. HDFC Bank, Indi Go, Maruti, BEL, Asian Paint, Eternal, Hindustan Unilever, Titan among others were the major losers.
Sectorally, Nifty Private Bank emerged as the top loser, falling 2.31 per cent, followed by Nifty Realty at 1.24 per cent. Nifty IT, PSU Bank, Media, Metal, Pharma, Oil & Gas, Healthcare and Chemicals traded in the green. Most broad market indices traded in the red during the early morning trade.
In the commodity market, Brent crude was trading at $90.21 per barrel at the time of reporting. On the other hand, spot gold fell 0.1 per cent to $4,014.53 an ounce as of 0242 GMT, while US gold futures for August delivery were steady at $4,019.80. The precious metal was trading at $4,027.27 at the time of reporting. Further, the Indian rupee opened 0.1 per cent lower at 96.40 per US dollar today as against previous close of 96.28.
Manav Modi Commodities Analyst Motilal Oswal Financial services Ltd noted, “Brent crude climbed above $90 after fresh military escalation in the Middle East, including attacks on a key oil facility in Kuwait and strikes on vessels transiting the Strait of Hormuz, raising fears of prolonged supply disruptions”, he said.
He added, “Gold prices traded lower, hovering around the key $4,000 mark as escalating US-Iran hostilities lifted crude oil prices and renewed concerns that higher energy costs could keep inflation elevated, reinforcing expectations that the Fed may maintain a restrictive monetary policy for longer”.
Market analyst Vipin Dixena noted, “Nifty opened with a negative bias today, but is holding above the EMA 50 on the intraday chart. Immediate support is at 24,150, if this breaches, a sell-off will get triggered. RSI is around 50, which shows balance. So for today, the better read is buy-on-dips above 24,150, with a breakout only if Nifty sustains above 24,250; otherwise, expect sideways churn between support and resistance. A weaker rupee and elevated oil prices can make market weak in today’s session”. (ANI)
