Sensex, Nifty open lower as Iran unrest, crude prices spook investors

Concerns over global geopolitical tensions and persistent foreign fund outflows weighed on market sentiment during early trade.

The benchmark NIFTY 50 index opened at 25,669.05, slipping by 14.25 points or 0.06 per cent. The BSE Sensex also started the session in the red, opening at 83,435.31, down by 140.93 points or 0.17 per cent.

Market participants remained on edge as global uncertainties persist. Indian equity markets began the week on a cautious note due to restrained risk appetite.

Ponmudi R, CEO of Enrich Money, said "Indian equity markets begin the week on a cautious footing as risk appetite remains restrained amid lingering global uncertainty, continued FII outflows, and geopolitical overhangs. Volatility is expected to remain elevated, particularly during early trade, with any pullback rallies likely to be short-lived. The broader market trajectory over the coming sessions will be guided by global developments and upcoming inflation data, which could influence near-term positioning".

Crude oil prices added to investor concerns. Brent crude prices on Monday surged by 0.26 per cent at the time of filing this report to USD 63.49 per barrel, further dampening sentiment for domestic equities.

In the broader market on the National Stock Exchange (NSE), pressure was visible across segments. The Nifty 100 index was down by 0.03 per cent, while the Nifty Midcap 100 and Nifty Smallcap 100 indices also declined by 0.03 per cent each.

Sectoral indices on the NSE largely opened in the red. Except for Nifty Metal, Nifty PSU Bank, and Nifty Realty, all other sectors witnessed declines. Nifty Auto was down by 0.11 per cent, Nifty IT slipped by 0.23 per cent, Nifty Media fell by 0.22 per cent, Nifty Pharma edged lower by 0.01 per cent, and Nifty Consumer Durables declined by 0.18 per cent.

Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said "Nifty 50 has underperformed, this decline is largely driven by global uncertainties, including heavy FII selling, concerns over Trump's trade tariffs, and muted global signals. Additionally, rising crude oil prices have dampened sentiment. From a technical perspective, the outlook remains weak. The index is currently trading below its short-term EMAs, and the sustained selling pressure suggests a further downtrend in the coming sessions".

Global tensions remained high amid massive protests across several provinces in Iran. For the last 15 days, Iran has been dealing with severe unrest against soaring inflation and economic hardship. The protests have reportedly killed over 500 people and have escalated into nationwide unrest marked by violent clashes between protesters and security forces.

On the fund flow front, foreign institutional investors (FIIs) remained net sellers, while domestic institutional investors (DIIs) provided some support. In the cash market on January 9, FIIs sold shares worth Rs 3,769.3 crore, while DIIs bought equities worth Rs 5,595.8 crore.

Meanwhile, other Asian markets showed a positive trend. Japan's Nikkei 225 surged by 1.5 per cent, Singapore's Straits Times was up by 0.54 per cent, Hong Kong's Hang Seng index gained 0.87 per cent, Taiwan's weighted index rose by 0.97 per cent, and South Korea's KOSPI advanced by 1.16 per cent.

- ANI