Mumbai– Indian equity markets began the week on a cautious note, closing lower on Monday as escalating tensions in the Middle East rattled investor sentiment. The decline came in the wake of a U.S. airstrike targeting three nuclear facilities in Iran—an aggressive show of support for Israel in its ongoing conflict with Tehran.
The Sensex slipped 511.38 points, or 0.62%, to end the day at 81,896.79. It traded within a wide range, hitting an intraday high of 82,169.67 and a low of 81,476.76. The Nifty 50 also closed in negative territory, down 140.50 points, or 0.56%, at 24,971.90 after swinging between 25,057 and 24,824.85 during the session.
Despite the slide in benchmark indices, broader markets showed relative strength. The Nifty Midcap 100 rose 0.36%, while the Nifty Smallcap 100 gained 0.70%, signaling selective buying in mid- and small-cap counters.
Among the 30 Sensex constituents, HCL Technologies, Infosys, Larsen & Toubro, Mahindra & Mahindra, Hindustan Unilever, and ITC were the biggest losers, shedding between 2.28% and 1.21%. Conversely, Trent, Bharat Electronics, Bajaj Finance, Kotak Mahindra Bank, and Bajaj Finserv led the gainers, rising between 3.39% and 0.58%.
Sectoral performance was mixed. Banking, auto, FMCG, and realty indices ended in the red, while metal, consumer durables, pharma, and media stocks posted modest gains. The worst performer was the Nifty IT index, which dropped 1.48%, weighed down by losses in Coforge and Persistent Systems.
“Markets had rallied last Friday on hopes of de-escalation in the Middle East after the U.S. hinted at a two-week diplomatic window,” said Vinod Nair, Head of Research at Geojit Financial Services. “However, the unexpected U.S. strike on Iranian nuclear facilities over the weekend shattered those expectations, spiking crude oil prices and sparking consolidation in Indian equities.”
The India VIX, a key gauge of market volatility, climbed 2.74% to 14.05, reflecting heightened investor nervousness.
The rupee also weakened, trading down 0.11 at 86.75 against the U.S. dollar, as the dollar index edged closer to the 99 mark. “The rupee remains vulnerable below the 86 level, with the next support near 87,” noted Jateen Trivedi, VP Research at LKP Securities.
Despite a recovery from early losses as oil prices stabilized somewhat, market sentiment remained fragile heading into the final week of June amid ongoing geopolitical uncertainties. (Source: IANS)
