Domestic equity markets closed lower on Monday, with the Nifty falling 0.5% to settle at 23,946, slipping below the key 24,000 level. The decline was led by profit booking after renewed geopolitical tensions over the weekend, while Information Technology and Auto stocks also came under selling pressure.
The Sensex fell 372 points, or nearly 0.5%, to close at 76,728, marking the end of a two-session winning streak. The decline coincided with the quarterly rebalancing of several NSE indices, which took effect during the trading session.
In contrast, U.S. stocks ended sharply higher on Monday, with the Dow Jones Industrial Average closing at a record high. Easing tensions between the United States and Iran lifted investor sentiment, and technology stocks rebounded after recent selling pressure.
Asian equities advanced on Monday, putting the regional benchmark on course for its strongest quarterly performance in 17 years, led by gains in technology stocks. Meanwhile, the Japanese yen weakened to a four-decade low against the US dollar, highlighting persistent pressure on the currency.
Reuters reported that Iranian and U.S. technical teams are expected to meet in Doha in the coming days to discuss the implementation of an interim peace agreement, after weekend military strikes had threatened to derail the fragile situation.
Background
The renewed geopolitical tensions between the US and Iran have added a layer of uncertainty to global markets. Historically, such tensions have led to increased volatility in equity markets, as investors seek safer assets.
Looking ahead, investors will be closely monitoring the developments in the US-Iran situation and their potential impact on global markets. Any progress in peace talks could provide a boost to investor sentiment and stabilize the markets in the coming days.
