Sensex, Nifty open 1 pc lower amid West Asia tensions, weak global cues
Mumbai, June 8
Indian equities opened sharply lower on Monday, with benchmark indices falling 1 per cent each amid escalating tensions in West Asia, rising crude oil prices and weak global cues.
Sensex opened at 73,421.61, down over 800 points or 1.11 per cent, while Nifty began the session at 23,080.70, declining 286 points or 1.22 per cent.
Sector-wise, selling pressure was seen across realty, metal, auto and information technology stocks, which witnessed the sharpest declines. Realty stocks fell nearly 2 per cent, while metal, auto and IT indices lost over 1 per cent each.
Among Nifty constituents, Wipro, TCS, Hindalco Industries, Tata Steel, JSW Steel, Bajaj Finance and Shriram Finance were among the major laggards.
Weakness extended beyond frontline indices, with broader market indices under pressure as Nifty Midcap 100, Midcap 150 and Smallcap indices declined close to 1 per cent each.
However, market volatility increased sharply, with India VIX surging nearly 15 per cent to around 18
Analysts said the broader technical structure remains weak, with Nifty continuing to trade below key moving averages and maintaining a lower high-lower low formation, indicating persistent selling pressure.
They added that immediate support is seen around the 23,100-23,000 zone, while resistance remains clustered near the 23,500-23,700 range.
Investor sentiment remained fragile amid escalating geopolitical tensions in West Asia after renewed Israeli strikes on Lebanon and reports of explosions in multiple Iranian cities raised concerns that the conflict could broaden further and disrupt crude supplies through the Strait of Hormuz.
However, earlier, US President Donald Trump said an agreement to end the conflict remained achievable and reportedly urged Israeli leadership to avoid further escalation.
Meanwhile, crude oil prices traded higher, with international benchmark Brent crude rising 4 per cent to $96.90. Similarly, US WTI gained 4.64 per cent to $94.75.
Asian markets largely traded in the negative territory, with Japan's Nikkei falling nearly 4 per cent, South Korea's KOSPI plunging 5 per cent, and Hong Kong's Hang Seng declining about 1 per cent.
— IANS
Reader Comments
Day traders must be having a field day with this volatility. India VIX up 15% is scary though. 😬 I'm sitting on my hands today - no point trying to catch a falling knife. Let the dust settle first.
Honestly, I feel our markets are overreacting. The US president said peace deal is achievable, but investors are panicking. Nifty at 23,000 is still decent support. My mutual fund SIP continues as usual 👍
Wipro and TCS leading the fall - IT stocks getting hammered again. But the real worry is crude hitting $96. Middle East situation affects our economy directly. Hope our government has contingency plans for oil supplies. 🛢️
One day up, next day down - this is getting exhausting for retail investors like me. 🎢 At this rate, maybe I should just put money in FD and sleep peacefully. But then again, buying during fear is how wealth is created, right?
Technical analysis says Nifty below key moving averages is bearish. But 23,000 zone has held as support multiple times. If that breaks, then we might see 22,500. For now, I'm watching the crude oil charts more than Nifty. West Asia geopolitics is the real driver.
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