Indian Markets Tumble Amid Middle East Tensions and US Rate Hike Fears

Indian stock markets ended Monday on a weak note for the fifth consecutive week as investors reacted to rising tensions in the Middle East and expectations of a US interest rate hike.

The Nifty 50 benchmark index fell 0.5% to close at 23,779.15, while the BSE Sensex declined by the same margin to 76,132.81, both benchmarks' lowest levels in about six weeks.

The decline was broad-based across all sectors, with 14 out of 16 major sectoral indices ending lower. The Nifty IT index was among the hardest hit, falling 2.3%, as stronger-than-expected US employment data increased expectations that the Federal Reserve could raise interest rates at its upcoming policy meeting.

Higher US interest rates may put pressure on spending by American clients, affecting Indian IT companies reliant on revenue from the US market. Rising crude oil prices and escalating tensions involving the US and Iran added to concerns around inflation and risk appetite, with Brent crude trading near $97 a barrel during the session.