Nifty, Sensex end lower as Iran sanctions, high crude and rising bond yields weigh on sentiment

MUMBAI: Benchmark domestic equity indices closed lower on Monday, as investors remained cautious ahead of fresh US sanctions on Iran, while elevated crude oil prices and rising domestic bond yields continued to weigh on market sentiment. The Nifty 50 index closed at 24,219.05, declining 32.95 points or 0.14 per cent, while the BSE Sensex ended at 77,370.13, down 171.70 points or 0.22 per cent.

According to Vinod Nair, Head of Research, Geojit Investments Limited, caution dominated the market as investors awaited fresh sanctions from the US on Iran. “Caution dominated market sentiment as investors are awaiting fresh sanctions from the US on Iran later today. Brent crude eased on profit-taking but remained above the $90/bbl mark, supported by concerns over tighter Iranian oil supplies and ongoing tensions around the Strait of Hormuz,” Nair said.

He added that the RBI’s recent hawkish stance, along with higher domestic bond yields, also affected risk appetite. “Against this backdrop, coupled with the RBI’s recent hawkish stance, domestic bond yields moved higher, dampening risk appetite,” Nair said.

Brent crude oil remained elevated at USD 93 per barrel at the time of reporting. Gold prices continued to remain high and were trading at Rs 1,63,499 per 10 grams for 24 karat, while silver was trading at Rs 2,45,658 per kg.

Sectorally, most NSE indices closed in the red. Nifty Metal was the notable outperformer, rising 1.15 per cent, while Nifty Realty gained 0.31 per cent. Among the sectors that declined, Nifty Auto fell 0.30 per cent, Nifty FMCG declined 0.29 per cent, Nifty Media lost 0.49 per cent, Nifty Pharma fell 0.07 per cent, Nifty PSU Bank declined 1.27 per cent, Nifty Consumer Durables dropped 0.47 per cent, and Nifty Oil and Gas fell 0.13 per cent.

The top gainers in the Nifty 50 included Hindalco, JSW Steel, Dr Reddy, Tata Steel, HCL Tech and Tata Consumer, while SBI Life, Bajaj Finance, Bajaj Finserv, TMPV and Max Health were among the top losers.

Nair said Indian equities also tracked weak Asian markets and drifted lower during the day, with large-cap stocks underperforming broader markets. He noted that metals outperformed on firm commodity prices, while banking stocks came under pressure, with PSU banks trailing private-sector banks amid mark-to-market losses due to rising sovereign bond yields.

Asian markets also remained under pressure. South Korea’s KOSPI declined more than 3 per cent to close at 6,696, Hong Kong’s Hang Seng fell 2 per cent to 25,499, Japan’s Nikkei declined 0.72 per cent to 65,545, while Singapore’s Straits Times fell 0.15 per cent to 5,680. (ANI)