Indian Markets Open Week in Red as Brent Crude Reaches New Heights Amid Geopolitical Tensions

Indian markets opened the week in the red as Brent Crude reached new heights amid escalating geopolitical tensions in West Asia and concerns over US interest rates. The BSE Sensex fell by 107.38 points or 0.14% to stand at 76,408.05, while the NSE Nifty 50 traded at 23,883.15 points, down 14.55 points or 0.06%. Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that Brent Crude is trading near USD 96.50 after a 10% rise last week, with the weekend adding a new dimension to the conflict.

Banerjee added that the US struck three Iranian oil tankers anchored off Iran's coast in response to Tehran firing ballistic missiles at American warships. The attack has sparked concerns about a possible escalation of tensions in the region.

At the time of reporting, Brent Crude rose by USD 0.74 (+0.77%) to USD 97.02, while Crude Oil gained USD 0.79 (+0.86%) to stand at USD 92.27. In contrast, Gold slid USD 30.63 (-0.69%) to USD 4,401.93.

Rajesh Palviya, Head of Research at Axis Direct, highlighted key support zones for the Nifty, noting that the near-term bias remains cautious with the index struggling below the crucial 24,000-24,150 zone. Immediate support is placed at 23,800, followed by 23,700 and 23,600.

Vikram Kasat, Chief Business Officer, Advisory and Dealing at PL Capital, predicted that weak Wall Street cues, fear of rate hike in US, and uncertainty in Middle East may lead to some more consolidation in the stocks when markets open for trade on Monday.