Indian equities opened lower on Monday amid ongoing concerns over Middle East conflicts and a mixed macroeconomic backdrop, with domestic and foreign investors navigating global uncertainties.
Indian shares opened lower on Monday as renewed worries over Middle East tensions kept investors cautious, even with Brent crude holding near $89 a barrel. The BSE Sensex fell 116.33 points, or 0.14%, to 77,892.92 at the start of trade, while the Nifty slipped 22.55 points to 24,343.45. That weak start came after a period in which domestic markets had benefited from easing oil prices and hopes of a de-escalation in the region, according to a recent weekly note from Bajaj Life Insurance.
The mood was broadly defensive across the market. Broader indices also traded lower, with the BSE Midcap Select Index down 60.11 points and the BSE Smallcap Select Index off 0.17 points to 9,087.10. On the NSE, however, market breadth was slightly positive, with 1,319 shares rising against 1,278 falling and 128 unchanged. That did little to offset the pressure from the geopolitical backdrop, which has repeatedly unsettled investors this year; Brickwork Ratings noted in March that sharp sell-offs in the Sensex and Nifty were closely tied to conflict-driven risk aversion.
Sentiment was also reflected in the derivatives market. Gift Nifty pointed to a softer opening, while foreign investors bought equities worth Rs 508.12 crore on August 14 and domestic institutions were net buyers to the tune of Rs 356.40 crore. Asian markets were mixed, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng advancing, while Shanghai’s benchmark fell and South Korea’s market was shut for a holiday.
The latest pullback comes against a mixed domestic macroeconomic backdrop. Edelweiss recently said consumer inflation rose to 3.4% in March from 3.21% in February, wholesale inflation increased to 3.88%, and the merchandise trade deficit widened to $20.67 billion. The firm also pointed to a five-month high in unemployment at 5.1%, factors that may leave investors sensitive to any fresh shock to energy prices or global trade.
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