Sensex falls over 300 points; Nifty also slips below 23,250 amid geopolitical concerns

Stock market opens in red as Sensex drops 322 points, Nifty slips (Representational image)

The Indian stock market on Tuesday opened lower amid geopolitical tensions and concerns over a weak monsoon forecast.

As per IANS, Sensex on Tuesday began the session at 73,945.20, down 322 points or 0.43 per cent from the previous close, while Nifty opened at 23,229.15, lower by 153.45 points or 0.65 per cent.

Sectoral indices

Sectoral indices, Nifty Auto, Nifty Realty and Nifty Chemicals were trading nearly 1 per cent lower. Private banks, PSU banks, cement and media indices were also under pressure. On the other hand, IT stocks traded higher, with Nifty IT surging nearly 2 per cent.

Meanwhile, Bajaj Finance, Bajaj Finserv, Eternal, Apollo Hospitals, Shriram Finance, Max Healthcare, Power Grid, NTPC, Trent and SBI Life emerged among the top losers from the Nifty pack.

Global markets

On the commodities front, international benchmark Brent crude fell 0.67 per cent to USD 94.34 per barrel, while US West Texas Intermediate (WTI) declined 0.75 per cent to USD 91.46, as per IANS.

In Asia, markets showed a mixed trend. Japan's Nikkei traded over 2 per cent lower, while South Korea's KOSPI slipped nearly 3 per cent. Hong Kong's Hang Seng, however, was trading about 1 per cent higher.

Overnight in the US, Wall Street ended mildly positive, with the S&P 500 gaining 0.42 per cent and the Nasdaq closing 0.26 per cent higher. The volatility tracker, India VIX, declined more than 2 per cent to 16, as per IANS.

Expert Opinion

Analysts said geopolitical tensions, elevated crude oil prices and weak monsoon concerns continued to weigh on investor sentiment.

The experts further added, "And now we have the additional threat of the IMD's latest projection of monsoon rains at 90 per cent of the long-term average, which could have negative implications for growth and inflation," as cited by IANS.

The experts further asserted that the decline in crude oil prices might be a breaking point in the bear run of the stock market. They said that a resolution of the West Asia conflict and the consequent decline in crude prices would be a major positive, but expectations on that front have repeatedly been disappointed, and the issue continues to weigh on sentiment.

Highlighting that investors should stick to fundamentals and maintain proper asset allocation based on risk appetite and financial goals, the experts also advised investors to be patient.

(With inputs from IANS)