Domestic equity indices traded sharply lower on Monday amid concern around ongoing geopolitical concerns in the Middle East and a decline in private sector banking stocks after they reported subdued earnings for the first quarter of the current financial year (Q1 FY27).
Last seen, BSE Sensex–the 30-share index– was trading at 77,510.49, down 0.82 per cent or 640.96 points. NSE’s Nifty50 was quoted at 24,172.35, down 0.67 per cent or 161.95 points.
An uptick in crude prices also weighs on the market sentiment. Brent Crude, the global oil benchmark, was trading over 2 per cent higher to a level of $90 per barrel. AT the same time, WTI Crude was quoted at $84.48 per barrel.
“Indian equity markets opened on a weak note, with the Nifty witnessing a gap-down start as investors adopted a cautious stance amid a combination of disappointing corporate earnings and an increasingly challenging global backdrop. Selling pressure was led by the private banking space, with HDFC Bank declining sharply after reporting weaker-than-expected net interest margins, dragging the banking index lower and weighing on broader market sentiment,” said Ponmudi R, CEO of Enrich Money.
“Investor risk appetite also remained under pressure as escalating geopolitical tensions in the Middle East continued to fuel uncertainty. The latest bout of risk aversion follows the ninth consecutive night of U.S. military strikes on Iran, raising concerns over a prolonged conflict and prompting investors to adopt a more defensive approach,” Ponmudi added.
HDFC Bank, Axis Bank, Kotak Bank Fall
Shares of Axis Bank, HDFC Bank, and Kotak Bank were trading 4.78 per cent, 4.23 per cent and 2.71 per cent down, respectively.
Other losers include Indigo, Maruti Suzuki, Infosys, Hindustan Unilever, TCS, BEL, Bajaj Finance, and Eternal, which were trading lower.
Gainers: Trent, NTPC, PowerGrid, Bharti Airtel, ICICI Bank, Ultratech Cement, Tech Mahindra, Tata Steel, Sun Pharma, L&T and Titan were the top gainers.