The Indian stock market began the week on a weak note, with benchmark indices BSE Sensex and Nifty 50 opening lower on Monday, extending losses from the previous week as global geopolitical tensions and rising crude oil prices dampened investor sentiment. In early trade, the Nifty 50 was trading at 22,528.10, down 291.50 points or 1.28%, while the Sensex slipped to 72,594.72, declining 988.50 points or 1.34%. Investors remained cautious amid the prolonged US–Iran conflict in the Middle East, which has triggered a sharp rise in crude oil prices and increased uncertainty across global financial markets.
The negative sentiment follows a steep fall in the previous session. On Friday, the Indian equity market witnessed heavy selling pressure, with the Nifty 50 slipping below the crucial 23,000 mark. The Sensex plunged 1,690.23 points, or 2.25%, to close at 73,583.22, while the Nifty 50 ended 486.85 points, or 2.09% lower, at 22,819.60.
Market experts say that escalating geopolitical tensions, combined with rising oil prices, are affecting investors’ risk appetite. Higher crude prices are particularly concerning for India, a major oil importer, as they can widen the trade deficit and fuel inflation. All banking stocks are trading in the red, with the Nifty Bank on the verge of dropping below the 50,000 mark. The most important reaction today, though, will be on the rupee, after the RBI capped total positions that banks can take in the onshore currency market to $100 million. The move will also have a reaction on banking names, keeping the Nifty Bank in focus too. The Nifty Bank is now down 15% from its peak, and is struggling to hold 52,000.