The Indian stock market began the week on a weak note as it shed recent gains amid rising Middle East tensions.
The fall followed United States strikes on nuclear facilities in Iran, escalating the ongoing conflict between Iran and Israel. The strikes made investors wary, leading to a decline in key indices on Monday.
The Sensex dropped by 511.38 points, or 0.68 per cent, to close at 81,896.79. The index fluctuated between a high of 82,169 and a low of 81,475.
The Nifty showed a similar trend. It fell by 140.50 points, or 0.56 per cent, and ended the day at 24,971.90. During intraday trade, it touched a high of 25,057 and a low of 24,824.85.
The broader markets showed some resilience. The Nifty Midcap100 closed with a gain of 0.36 per cent, while the Smallcap100 rose by 0.70 per cent.
Top gainers and losers
Trent, Bharat Electronics, Bajaj Finance, Kotak Mahindra Bank, and Bajaj Finserv were the top gainers. Their shares rose between 3.39 per cent and 0.58 per cent.
On the losing side, the Nifty IT index dropped 1.48 per cent. Coforge and Persistent Systems dragged the sector down. Bank Nifty, Auto, FMCG, and Realty sectors also closed in the red. Meanwhile, metal, consumer durables, pharma, and media sectors ended with gains.
“Last Friday, markets had risen on hopes of easing Middle East tensions after the US gave a two-week window to decide its role in the Iran-Israel conflict,” said Vinod Nair of Geojit Investments Limited.
“But the sudden US airstrike over the weekend changed the scenario. It caused a surge in crude oil prices and led to consolidation in the domestic equity market,” he added.
The India VIX, a gauge of market volatility, rose by 2.74 per cent to 14.05 points.
The Nifty recovered some ground after a weak start, aided by a slight dip in crude prices. Still, it closed in the red.
Meanwhile, the rupee traded weak, falling by 0.11 to settle at 86.75 as the dollar index moved toward the 99 mark. “Technically, the rupee remains weak below 86, with support near 87,” said Jateen Trivedi of LKP Securities.
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