Indian Markets Open Lower Amid Rising Crude Oil Prices and Geopolitical Tensions
Markets in India opened lower on Monday due to renewed geopolitical tensions and rising crude oil prices. The S&P BSE Sensex fell 0.17% to 77,130.73, while the Nifty 50 index declined by 0.24% to 24,117.55.
The weakness was seen across various sectors, with Nifty Metal leading the decline at 1.70%, followed closely by Nifty IT at 1.32%. Other sector indices such as Realty, Cement, Chemicals, and FMCG also declined between 0.73% to 1%. In contrast, Nifty Private Bank was trading marginally positive, edging up 0.06% in early trade.
Market experts attributed the decline to several factors, including Fed chief Kevin Warsh's statement on inflation persistence, which has led to a possible rate hike at the FOMC meeting scheduled for September 15-16. The resulting rise in bond yields is negative for equities. Additionally, renewed tensions between the US and Iran have pushed Brent crude above $90-a-barrel mark.
On the technical front, experts pointed out that Friday's inside bar pattern has retained hopes of an upswing from the vicinity of 24,060. However, they cautioned that inability to float above 24,060 would expose 23,575.