Markets Open Lower, Renewed Geopolitical Tensions And Rising Crude Oil Prices Weigh On Sentiment

Mumbai witnessed Indian equity benchmarks opening lower on Monday, as investors remained cautious amid a mix of weak Asian markets, rising crude oil prices, and renewed geopolitical tensions in the Middle East. The Sensex started the day 133.78 points, or 0.17 percent, lower at 77,130.73, while the Nifty declined by 58.10 points, or 0.24 percent, to 24,117.55.

Selling was widespread across various sectors, with metal and IT stocks leading the decline. The Nifty Metal experienced the steepest drop, falling 1.70 percent, while the Nifty IT saw a 1.32 percent decrease. Both the Sensex and Nifty remain cautious, with key hurdles at 78,000 and 24,400 respectively. Media and PSU Bank indices also saw a slip of up to 1 percent, while sectors like realty, cement, chemicals, and FMCG continued to face pressure.

However, Nifty Private Bank managed to buck the trend, gaining 0.06 percent. The surge in crude prices above $90 added further pressure, as renewed US-Iran tensions drove international oil prices up sharply. Brent crude surged more than 2 percent to $90.67 a barrel, while WTI crude advanced 2.06 percent to $85.09. Investors were also scrutinizing comments from US Federal Reserve Chair Kevin Warsh, who sounded hawkish, indicating a possible rate increase at the upcoming FOMC meeting on September 15-16.

Asian markets were already on a tumultuous ride, with Japan's Nikkei slipping over 1 percent, South Korea's KOSPI falling more than 1 percent, and Hong Kong's Hang Seng dropping around 0.7 percent. HDFC Bank remained under the scanner due to speculation surrounding the successor to CEO Sasidhar Jagadishan. Technically, the level of 24,060 proved crucial for the Nifty, as a move above 24,215 might signal renewed strength, while a sustained break below 24,060 could potentially expose the index to further downside.