Sensex and Nifty slip amid Iran tensions, crude hits 52-week high

Mumbai: Domestic equity markets started Monday on a cautious note as investors monitored rising tensions in the Middle East. Early optimism faded quickly, with the Sensex falling 150 points (0.21%) to 73,168 and Nifty slipping 42 points (0.19%) to 22,670, pressured by selling in major stocks such as IndiGo, Kotak Mahindra Bank, Tata Steel, Sun Pharma, Bajaj Finance, M&M, JSW Steel, and Dr Reddy’s, which fell up to 2%.

Markets had initially opened on a positive note, with Sensex up 158 points and Nifty rising 67 points, supported by early gains in banking and auto stocks.

Some sectors bucked the downward trend. Nifty PSU Bank (+0.51%) and Private Bank indices (+0.30%) were in the green, along with Auto, Financial Services, and IT sectors. Broader indices like Nifty 100, Nifty 200, and Nifty 500 rose up to 0.31%, while Midcap and Smallcap indices posted modest gains.

On the other hand, Nifty Metal (-0.22%) along with Pharma and Realty saw mild declines.

Investor caution remained high, reflected in the India VIX rising over 2%, amid geopolitical uncertainties surrounding the Strait of Hormuz. Analysts noted that markets remain sensitive due to the escalating tensions between Iran, Israel, and the US, with no resolution yet in ceasefire talks.

While US markets ended last week higher on strong jobs data, sentiment remains fragile due to rising crude prices and geopolitical risks.

The RBI’s upcoming MPC meeting this week will also be closely watched for any potential market triggers, alongside signs of easing tensions, which could support a rebound.

Crude oil pressure

Crude prices surged sharply, adding to investor worries. Brent crude touched $111.23 per barrel (up 2%) and US WTI rose 3.53% to $115.48, hovering near yearly highs, highlighting concerns over global oil supply.

Markets across Asia showed a mixed trend:

Japan’s Nikkei: +1%

South Korea’s Kospi: +1%

Hong Kong’s Hang Seng: -1%

Meanwhile, Wall Street ended last week slightly higher, with the S&P 500 up 0.11% and Nasdaq gaining 0.18%, reflecting cautious optimism ahead of the week.

With IANS inputs