Mumbai: Indian benchmark indices opened lower on Tuesday as concerns over a weak monsoon forecast, rising geopolitical tensions and elevated crude oil prices weighed on investor sentiment.

The Sensex opened 322 points lower at 73,945.20, while the Nifty slipped 153.45 points to start the session at 23,229.15. The decline comes after the India Meteorological Department's latest forecast raised concerns about below-normal rainfall, triggering worries over inflation, rural demand and economic growth.

Market participants are closely tracking the monsoon outlook after the weather department projected the weakest monsoon in 11 years. Analysts said the forecast has added a fresh layer of uncertainty for investors already grappling with geopolitical tensions and volatile commodity prices.

Sectorally, auto, realty and chemical stocks led the losses, with their respective indices falling around 1 per cent in early trade. Private banks, PSU banks, cement and media stocks also remained under pressure. In contrast, IT shares bucked the trend, with the Nifty IT index gaining nearly 2 per cent.

Among the major laggards on the Nifty were Bajaj Finance, Bajaj Finserv, Apollo Hospitals, Shriram Finance, Max Healthcare, Power Grid, NTPC, Trent and SBI Life.

Why is the monsoon forecast worrying investors?

A weaker-than-expected monsoon could affect agricultural output, push up food prices and create inflationary pressures, factors that often influence consumer spending and economic growth. Analysts noted that the IMD's projection of rainfall at 90 per cent of the long-term average has emerged as a key concern for the market.

They added that a resolution to the ongoing West Asia tensions and a decline in crude oil prices could improve sentiment, but repeated disappointments on that front continue to keep investors cautious.

Meanwhile, the India VIX, often referred to as the market's fear gauge, declined more than 2 per cent to 16, indicating lower volatility expectations despite the weak opening.

On the commodities front, Brent crude slipped 0.67 per cent to $94.34 per barrel, while US benchmark WTI crude fell 0.75 per cent to $91.46 per barrel.

Asian markets traded mixed, with Japan's Nikkei dropping over 2 per cent and South Korea's KOSPI falling nearly 3 per cent. Hong Kong's Hang Seng, however, gained around 1 per cent.

Overnight, Wall Street ended in positive territory, with the S&P 500 rising 0.42 per cent and the Nasdaq advancing 0.26 per cent.

With IANS inputs