Sensex falls 400 points, Nifty below 24,100 as US-Iran tensions weigh; Adani Enterprises down 3%

Indian benchmark indices traded lower on Monday, with the Sensex falling 401.21 points, or 0.52%, to 76,863.30, while Nifty declined 143.10 points, or 0.59%, to 24,032.55.

Renewed tensions between the US and Iran, along with a rise in crude oil prices, weighed on investor sentiment. Brent crude rose to around $90 a barrel after fresh US strikes on Iranian targets. Weak global market cues and continued foreign institutional selling also added to the pressure. 

Adani Enterprises drags Nifty

Among the major Nifty losers, Adani Enterprises fell 3.02%, while Hindalco Industries declined 2.51%, and Bajaj Finance slipped 2.22%. Infosys was down 2.19%, while Tata Steel fell 2.17%.

On the other hand, HDFC Bank was among the top gainers, rising 1.15%,  after brokerages retained their bullish stance on the country’s largest private sector lender despite managing director and chief executive officer Sashidhar Jagdishan’s decision not to seek reappointment.

Coal India gained 0.97%, while Bajaj Auto rose 0.80%. ONGC was up 0.62%, while Apollo Hospitals gained 0.50%.

All sectors trade in red

All sectoral indices were trading in the red, with Nifty Media leading the decline at 3.60%, followed by Nifty Metal, down 2.22%. Nifty IT fell 1.70%, while Nifty Realty declined 1.68% and Nifty Financial Services Ex-Bank slipped 1.49%.

Nifty PSU Bank was down 1.51%, while Nifty MidSmall IT & Telecom declined 1.26%. Nifty Cement fell 1.20%.

The market remained under pressure as investors also tracked the upcoming MSCI index rejig and the impact of higher crude prices on the domestic economy. According to analysts, the quarterly reshuffle is expected to trigger sizeable passive fund flows, concentrated in the final minutes of trading. "Reliance Industries is likely to face the largest outflow as its weight in the index is reduced. With these flows executed around the closing auction, the final half-hour could see outsized moves in affected stocks and the broader index, potentially making the closing print less representative of underlying market sentiment," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. 

According to him, India's Q1 GDP data due after market hours will offer fresh insight into the resilience of economic growth at a time when geopolitical tensions, higher energy costs and shipping disruptions are clouding the broader outlook.  "Oil prices had retreated from recent highs last week on optimism that negotiations aimed at normalising cargo traffic through the Strait of Hormuz were making progress. That optimism has since faded after U.S. forces struck Iranian missile launchers near the strait, prompting retaliatory missile attacks by Iran on U.S. bases in the region. The renewed escalation is expected to keep geopolitical risks elevated and energy prices at the forefront of investor sentiment," said Ponmudi R, CEO of Enrich Money.