07 September,2026 10:14 AM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The domestic equity benchmark indices declined in the initial trade on Monday amid escalating tensions between USA and Iran that have caused a spike in the global crude oil prices. The heightened activity in the primary market has also impacted the benchmark indices, according to analysts.
The 30-share BSE Sensex shed 248.48 points or 0.32 per cent at 76,266.95 in the early trade. The 50-share NSE Nifty lost 72.35 points or 0.30 per cent at 23,825.35 in the early deals.
According to V K Vijayakumar, Chief Investment Strategist, Geojit Investments the ongoing initial public offering (IPO) boom have attracted the investors towards the primary markets, which is weighing on the benchmark indices.
"There are eleven mainboard IPOs hitting the market this week. The mega IPOs from NSE and Jio also are expected this month. These mega IPOs are expected to absorb humongous liquidity from the market. Investors are looking for listing gains from these IPOs. In brief, the present focus is on the IPO market rather than the secondary market. This is likely to continue throughout September," he said.
Among the 30 Sensex constituents, Bharat Electronics, ICICI Bank, Bharti Airtel, Maruti Suzuki, and Eternal were the major gainers in the early trade. IT stocks were all quoting lower. Infosys, Tata Steel, HCL Tech, Tech Mahindra Kotak Mahindra Bank and Tata Consultancy Services (TCS) were among the laggards in the early trade. Infosys stock was trading 2.58 per cent lower in early deals.
The market benchmark indices have been on a downward trajectory, since the past four weeks and had settled lower on four of the five days last week. On Friday, the Sensex advanced 362.57 points, or 0.48 per cent, to settle at 76,515.43, while the Nifty climbed 24.25 points, or 0.10 per cent, to end at 23,897.70.
"Asian markets are trading higher, while Wall Street remains shut today for Labour Day. Crude oil remains the key swing factor for Indian equities. Brent is hovering around USD 97 a barrel following weekend US strikes on three Iranian tankers and Tehran's announcement of a restricted zone beyond the Strait of Hormuz - developments that could amplify inflationary pressures for an import-dependent economy," Rajesh Palviya, Head of Research, Axis Direct said.
According to news agency PTI, Brent crude, the global oil benchmark, traded 0.78 per cent higher at USD 97 per barrel, while Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,111.94 crore on Friday.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 traded higher while Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted lower.
(With inputs from PTI)
