Indian equity markets opened in negative territory on Monday as investors reacted to unfavourable global signals and renewed geopolitical uncertainty.
The Sensex began the session at 77,130.73, down 133.78 points, or 0.17 per cent, from its previous close. The Nifty declined by 58.10 points, or 0.24 per cent, to start at 24,117.55.
Metal stocks faced the strongest selling pressure in early trade, with the Nifty Metal index falling 1.70 per cent.
The Nifty IT index dropped 1.32 per cent, while Nifty Media and Nifty PSU Bank declined by as much as 1 per cent.
Investors sold shares in realty, cement, chemical and FMCG companies, pushing these sectoral indices lower by between 0.73 per cent and 1 per cent. In contrast, the Nifty Private Bank index edged up 0.06 per cent.
Market analysts said domestic equities entered the week amid several challenges from international markets.
Recent comments from US Federal Reserve Chairman Kevin Warsh have increased uncertainty over the future path of interest rates.
Investors are assessing whether persistent inflation could encourage the US central bank to maintain tighter monetary conditions.
Higher bond yields could further weigh on equities, particularly emerging markets, as investors reassess the attractiveness of riskier assets.
Fresh tensions involving the US and Iran have unsettled financial markets and pushed crude prices higher.
Brent crude advanced more than 2 per cent to $90.67 a barrel, while US West Texas Intermediate gained 2.06 per cent to $85.09.
The rise in oil prices has renewed concerns about inflation and corporate costs. HDFC Bank shares could witness heightened volatility amid speculation surrounding the appointment of its next chief executive.
On the technical front, analysts identified 24,060 as an important support level for the Nifty.
A sustained move above 24,215 could indicate renewed strength, while a break below 24,060 may expose the index to further downside towards 23,575.
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