Nifty Falls to 23,081, Sensex Below 73,400 as Metal, Realty and IT Lead Monday Losses

Indian equity markets witnessed a sharp sell-off in early trading on Monday, with benchmark indices Sensex and Nifty falling more than 1% amid weak global market cues, rising geopolitical tensions in the Middle East, and continued pressure on technology stocks. Broad-based selling was visible across sectors, dragging both frontline and broader market indices into negative territory during the opening session.

At around 9:17 am, the Nifty was trading lower by 1.22% at 23,081.40, while the Sensex declined 1.12% to 73,397. Market breadth remained weak as all major sectoral indices traded in the red. Metal stocks led the losses, followed by declines in realty, defense, and automobile shares. The weakness also extended to the broader market, with the Nifty Smallcap 250 and Nifty Midcap 150 indices posting notable losses.

One of the key factors weighing on investor sentiment was the sharp decline in global technology stocks. Asian markets opened significantly lower after renewed tensions between Iran and Israel sparked concerns among investors. South Korea's Kospi index suffered steep losses, while Japan's Nikkei 225 also declined sharply. The weakness followed a major sell-off in technology and artificial intelligence-related stocks on Wall Street, where the Nasdaq 100 recorded one of its biggest recent declines.

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The information technology sector was among the worst performers in India, mirroring global trends. Heavyweight IT stocks came under pressure as investors reacted to concerns about slowing technology spending and uncertainty surrounding global economic growth. The negative sentiment was compounded by rising US bond yields and expectations that the US Federal Reserve could maintain a tighter monetary policy stance for longer than previously anticipated.

Geopolitical tensions in the Middle East also contributed to market volatility. Investor concerns intensified after reports of fresh missile exchanges between Iran and Israel, raising fears that a fragile ceasefire could collapse and lead to a broader regional conflict. The uncertainty pushed crude oil prices higher, with Brent crude climbing sharply and adding to worries about inflationary pressures and increased input costs for businesses worldwide.

Commodity markets also reflected heightened uncertainty, with gold and silver prices witnessing notable fluctuations. While precious metals typically benefit from geopolitical risks, broader market adjustments and profit-booking activity weighed on prices. Analysts said investors are likely to remain cautious in the near term as they monitor developments in global markets, crude oil prices, central bank policy expectations, and the evolving geopolitical situation in the Middle East.

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