Domestic equity markets started the week on a lower note due to weak global cues and a rise in crude oil prices, leading to cautious investor sentiment. The Sensex dropped over 500 points to an intraday low of 77,591, while the Nifty began the session 144 points lower at 24,190.05. Financial stocks faced selling pressure, with the Nifty Private Bank index falling over 2%, followed by a 1% decline in the Nifty Realty index.
In contrast, the Nifty PSU Bank index saw a gain of about 1%, while the Nifty Pharma, Nifty Healthcare, Nifty Metal, and Nifty Oil & Gas indices traded positively. Among Nifty constituents, HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndiGo, and Shriram Finance were the top losers in early trade. Market experts noted that despite global weaknesses, the domestic market’s technical setup remains strong, with potential buying interest at lower levels. The derivatives setup supports a bullish outlook, with the Nifty likely to find immediate support near 24,100 and face resistance at 24,500.
International oil prices surged due to escalating tensions in the Middle East, with the US and Iran involved in fresh attacks. Brent crude neared the $90-a-barrel mark with a nearly 3% rise, while the US West Texas Intermediate (WTI) crude climbed over 3% to $85.39 a barrel. Tehran mentioned the breakdown of the ceasefire between the two nations, raising concerns about oil supply disruptions through vital shipping routes. Asian markets showed mixed trends, with Japan’s Nikkei and South Korea’s Kospi falling over 4%, while Hong Kong’s Hang Seng gained about 2%. Indonesia’s Jakarta Composite and China’s Shanghai Composite also saw increases of up to 1%.
