The Indian equity markets opened on a weak note Monday, tracking negative global cues as escalating tensions in the Middle East weighed on investor sentiment. Early trade witnessed selling pressure across key sectors, including IT and auto.
As of 9:30 am, the BSE Sensex was down by 677.10 points or 0.82%, trading at 81,731.07. The NSE Nifty declined by 204.60 points or 0.81%, settling at 24,907.75.
The Nifty Bank index also traded lower, shedding 387.75 points or 0.69% to reach 55,865.10. Meanwhile, the Nifty Midcap 100 dropped 219.45 points or 0.38% to 57,776.05, and the Nifty Smallcap 100 slipped 45.25 points or 0.25% to 18,148.95.
According to market analysts, the worsening geopolitical crisis—triggered by reports of the US bombing three of Iran’s nuclear facilities—is unlikely to have a deep, long-term impact on the markets unless the situation escalates significantly.
“If Iran targets and damages US defence facilities in the region or seriously harms US military personnel, Washington’s response could be massive and might aggravate the crisis. However, the current market view is that Iran’s ability to retaliate meaningfully against the US and Israel is limited,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He added that the closure of the strategic Hormuz Strait would likely hurt Iran and its ally China more than others, reinforcing a market outlook that still supports a “buy on dips” approach.
Among the Sensex constituents, major laggards included Infosys, HCL Tech, Hindustan Unilever, TCS, Asian Paints, Power Grid, Reliance, and ITC. On the other hand, Bharat Electronics Limited (BEL), Bharti Airtel, and Trent were among the top gainers.
Foreign institutional investors (FIIs) continued their buying streak for the fourth consecutive day on June 20, purchasing equities worth ₹7,940.70 crore. In contrast, domestic institutional investors (DIIs) offloaded equities worth ₹3,049.88 crore during the same session.
“We expect our markets to open lower in reaction to global developments but may attempt to recover from the initial losses. Immediate resistance is seen at 25,222, while support has moved up to 24,800,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Asian markets also reflected the cautious mood, with indices in Bangkok, Japan, Seoul, Hong Kong, and Jakarta trading in the red. Only China bucked the trend by trading in the green.
On Wall Street, the Dow Jones closed at 42,206.82 on Friday, gaining 35.16 points or 0.08%. The S&P 500 fell by 13.03 points or 0.22% to 5,967.84, while the Nasdaq declined by 98.86 points or 0.51% to end at 19,447.41.
— IANS