Mumbai: The Indian benchmark indices opened lower on Monday, impacted by weak global cues and escalating tensions in the Middle East. Selling pressure was notable in the IT and auto sectors during early trading hours.
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At around 9:30 am, the Sensex dropped 677.10 points or 0.82% to 81,731.07, while the Nifty declined 204.6 points or 0.81% to 24,907.75.
Broader Market Performance
- Nifty Bank: Down 387.75 points or 0.69% at 55,865.10
- Nifty Midcap 100: Dropped 219.45 points or 0.38% to 57,776.05
- Nifty Smallcap 100: Fell 45.25 points or 0.25% to 18,148.95
Analyst Insight on Iran-US Tensions
Despite the US bombing of three Iranian nuclear facilities escalating the geopolitical crisis, analysts believe the market impact could remain contained — at least for now.
“If Iran targets US defense facilities or causes casualties, a strong US retaliation could escalate the crisis. But currently, markets seem to think Iran has limited options against the US and Israel,”
— Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
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He further noted that a closure of the Strait of Hormuz would hurt Iran and China more than others, reinforcing the ‘buy on dips’ market strategy.
Top Gainers and Losers
Top Losers in Sensex Pack:
- Infosys
- HCL Tech
- Hindustan Unilever
- TCS
- Asian Paints
- Power Grid
- Reliance
- ITC
Top Gainers:
- Bharat Electronics Limited (BEL)
- Bharti Airtel
- Trent
Also Read: Indian Stock Market Ends Week Strong as Nifty Breaks 25,000; Sensex Hits Record High
FII and DII Activity
On June 20, Foreign Institutional Investors (FIIs) continued their buying streak for the fourth consecutive day, purchasing equities worth ₹7,940.70 crore. Meanwhile, Domestic Institutional Investors (DIIs) sold equities worth ₹3,049.88 crore.
Market Outlook
“We expect markets to open lower but could recover later in the session. Immediate resistance is at 25,222, and support has shifted to 24,800,”
— Devarsh Vakil, Head of Prime Research, HDFC Securities
Global Market Overview
In Asia, most major indices were trading in red:
- Bangkok, Japan, Seoul, Hong Kong, and Jakarta: Down
- China: The only major Asian market trading in green
On Friday, the US markets ended mixed:
- Dow Jones: Up 35.16 points (0.08%) at 42,206.82
- S&P 500: Down 13.03 points (0.22%) at 5,967.84
- Nasdaq: Declined 98.86 points (0.51%) at 19,447.41