Wall Street opens lower as high-stakes Iran, inflation tests loom

The Nifty 50 index closed lower on Monday, ending at 24,219.05 points, marking a decline of 0.14%. The Sensex also saw a drop, settling at 77,369.11, down by 0.22%. Investor sentiment was influenced by concerns over potential US sanctions against Iran, known as Washington's "economic D-Day," and Tehran's counter-threat to restrict oil flows through the Strait of Hormuz.

The Nifty PSU Bank index suffered the most significant losses, falling by 0.9%, driven by higher sovereign bond yields triggering mark-to-market losses. Banking stocks and private sector banks impacted the benchmark index, but the metal and realty sectors saw moderate gains. Gold gained ground as investors sought safe-haven assets amid geopolitical uncertainty, while domestic crude futures dropped nearly 2%, reaching around ₹8,170 per barrel.

The rupee weakened slightly against the dollar, ending at 95.70-95.74. Market breadth was weak, with more than 298 stocks in the Nifty 500 ending in the red, and the advance-decline ratio skewed towards declines. Analysts expect the Nifty to remain within a 24,000–24,400 range in the near term, with a sustained move above 24,360 required to potentially reach 24,600 levels.