The Indian stock market started lower on Tuesday due to geopolitical tensions and concerns regarding a weak monsoon forecast. Sensex opened at 73,945.20, down 322 points or 0.43%, while Nifty began at 23,229.15, lower by 153.45 points or 0.65%. Various sectors like Nifty Auto, Nifty Realty, and Nifty Chemicals were trading nearly 1% lower, while IT stocks saw a surge of almost 2%.
Bajaj Finance, Bajaj Finserv, Eternal, Apollo Hospitals, Shriram Finance, Max Healthcare, Power Grid, NTPC, Trent, and SBI Life were among the top losers from the Nifty pack. The volatility tracker, India VIX, decreased by more than 2% to 16. Analysts mentioned that geopolitical tensions, high crude prices, and weak monsoon worries were impacting investor confidence.
The Indian Meteorological Department’s projection of monsoon rains at 90% of the long-term average raised concerns about growth and inflation. Resolving the West Asia conflict and subsequent crude price drops would be positive, but uncertainties persist. Investors were advised to focus on fundamentals, maintain appropriate asset allocation, and exercise patience.
The weather department’s forecast of the weakest monsoon in 11 years has raised alarms for the agriculture sector. Internationally, Brent crude dropped to $94.34 per barrel, and US WTI declined to $91.46. In Asia, markets showed mixed trends, with Japan’s Nikkei down over 2%, South Korea’s KOSPI slipping nearly 3%, and Hong Kong’s Hang Seng trading about 1% higher.
In the US, Wall Street closed slightly positive, with the S&P 500 up by 0.42% and the Nasdaq ending 0.26% higher.
