Mumbai, June 8: The Indian stock market opened lower on Monday, reflecting rising tensions in West Asia, a spike in crude oil prices, and weak signals from global markets. Both major benchmark indices, Sensex and Nifty, fell by nearly 1 percent at the start of trading.
The Sensex opened down by over 800 points, or 1.11 percent, at 73,421.61, while the Nifty dropped 286 points, or 1.22 percent, to begin trading at 23,080.70.
Sector-wise, there was significant selling pressure in real estate, metal, auto, and information technology (IT) stocks, with realty shares witnessing a decline of nearly 2 percent. The metal, auto, and IT indices also fell by more than 1 percent.
Notable weak stocks in the Nifty included Wipro, TCS, Hindalco Industries, Tata Steel, JSW Steel, Bajaj Finance, and Shriram Finance.
The weakness was not confined to the major indices; broader market indices also faced pressure, with Nifty Midcap 100, Midcap 150, and Smallcap indices each declining by around 1 percent.
Market volatility surged, with the India VIX jumping nearly 15 percent to around 18.
Analysts indicate that the overall technical structure of the market remains weak. The Nifty is trading below key moving averages and is forming a ‘lower high-lower low’ pattern, signaling ongoing selling pressure.
They suggest that immediate support for the Nifty is seen in the range of 23,100-23,000, while strong resistance exists between 23,500-23,700.
Investor sentiment remains weak due to escalating geopolitical tensions in West Asia. Reports of new Israeli attacks on Lebanon and explosions in several Iranian cities have raised concerns that the conflict could widen and disrupt crude oil supplies through the Strait of Hormuz.
However, prior to this, U.S. President Donald Trump stated that a compromise to end the conflict is still possible and reportedly urged Israeli leadership to avoid further escalation.
Meanwhile, crude oil prices continued to rise. The international benchmark Brent crude increased by 4 percent to $96.90 per barrel, while U.S. WTI rose by 4.64 percent to trade at $94.75 per barrel.
Widespread weakness was also observed in Asian markets. The Nikkei 225 fell by nearly 4 percent, the Kospi recorded a significant drop of 5 percent, while the Hang Seng Index traded down by about 1 percent.
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