Mumbai: Indian stock markets started the week on a cautious note as rising tensions between the US and Iran triggered fresh concerns among investors. Benchmark indices opened lower on Monday, with crude oil prices climbing amid fears of further disruption in global energy supplies.
Sensex, Nifty Open In Red
The BSE Sensex and NSE Nifty witnessed early selling pressure during Monday's trading session. The Sensex opened around 76,446 levels, while the Nifty started near 23,883. Both indices declined nearly 0.2% at the opening bell.
Selling pressure was visible across major sectors, with investors tracking global developments and their possible impact on inflation, crude prices and corporate earnings.
Iran-US Tensions Impact Market Sentiment
The latest market weakness comes after a sharp escalation in US-Iran tensions. Concerns over the conflict's impact on oil supply routes have pushed crude prices higher, adding pressure on economies that rely heavily on energy imports, including India.
Brent crude prices traded close to $97 per barrel as geopolitical risks increased. A rise in crude prices could impact India's import bill and put additional pressure on inflation and the rupee.
Rupee Opens Slightly Stronger
Amid global uncertainty, the Indian rupee opened at around Rs 94.39 against the US dollar, compared with Friday's close of Rs 94.49.
Market experts believe investors may remain cautious throughout the week as they monitor developments in West Asia, foreign fund flows and upcoming domestic economic indicators.
Analysts Warn Of Volatility Ahead
Experts said renewed geopolitical tensions, higher oil prices and foreign investor selling could keep Indian equities under pressure. Analysts expect markets to remain range-bound unless there is clarity on global risk factors.
The previous trading session had provided some relief, with the Sensex gaining over 360 points and the Nifty recovering after four consecutive sessions of losses.
However, with oil prices rising and global uncertainty increasing, traders are keeping a close watch on further developments in the US-Iran conflict.