Sensex, Nifty fall as US-Iran tensions, higher yields weigh on sentiment, HDFC Bank gains

On Monday, equity benchmarks opened lower as higher bond yields and renewed geopolitical tensions affected market sentiment. The Sensex fell 350.88 points or 0.45% to 76,913.63, with a low of 76,869.59. The Nifty 50 dropped 140.25 points or 0.58% to 24,035.40. Tensions escalated after US forces targeted two Iranian launchers, marking the first known American strikes on Iran since late July.

Brent crude traded around $90 a barrel, up about 2% amid heightened US-Iran tensions. Analyst Dr. V K Vijayakumar of Geojit Investments Ltd. noted that the market faced headwinds at the beginning of the week, with Fed chief Kevin Warsh's statement implying a potential rate hike at the September FOMC meeting. This, in turn, raised bond yields, adversely impacting equity markets.

While broader markets declined, private banks saw mild gains. Metal, media, realty, and IT stocks led declines. Amid the mixed performance, HDFC Bank rose more than 2% as CEO Sashidhar Jagdishan decided not to seek reappointment, potentially allowing new leadership to reshape the bank's strategy.