Indian stock markets opened lower Monday, mirroring declines in Asia-Pacific markets as investors reacted to escalating tensions in the Middle East and volatile energy prices. At pre-open, the Nifty50 was down 0.15 percent, or 35 points, at 23,116.10, even as the Sensex fell 148.13 points, or 0.2 percent, to 74,415.79.
The declines follow a sharp selloff last week, with the Sensex and Nifty crashing around 8 percent each as the prolonged closure of the Strait of Hormuz amid the conflict between Iran, Israel, and the United States spooked investors, according to the Economic Times.
Brent crude continued to trade above $100 per barrel in the Asia session, fueled by concerns over the safety of oil production infrastructure in Iran. The May future contract was trading 0.50 percent higher at $103.75 per barrel on the Intercontinental Exchange. News reports, citing US ambassador to the United Nations Mike Waltz, indicated that US President Donald Trump is considering options to strike oil infrastructure at Kharg Island, Iran’s oil export hub.
The downturn in Indian markets comes as global indices likewise retreated Friday. The S&P 500 and the Dow Jones Industrial Average were down 0.61 percent and 0.26 percent, respectively, as Brent crude surpassed the $100-per-barrel mark. Japan’s Nikkei 225 and South Korea’s Kospi were trading 0.73 percent and 0.20 percent lower, respectively, in early trade Monday.
Gold and Silver futures were also down, trading 0.96 percent and 1.55 percent lower, respectively. The Indian rupee has also weakened, crossing the 92-mark to reach a fresh all-time low, while foreign institutional investors (FIIs) have continued selling for the 11th consecutive session.
The market capitalization of all companies listed on the BSE has fallen below Rs 430 lakh crore, a decrease of approximately Rs 34 lakh crore since the beginning of the month, according to the Economic Times.
The initial public offering (IPO) of [Company Name Redacted] will close for subscription on Wednesday, with a tentative listing date of March 24.
