Stock market experiences decline amidst Israel-Iran tension.

The Sensex and Nifty, India’s benchmark indices, started on a downward trend as profit-taking set in following a significant rally the previous day, with investors remaining cautious due to the ongoing conflict between Israel and Iran. Additionally, the looming US Fed interest rate decision later in the week prompted many investors to adopt a wait-and-see approach.

The BSE Sensex, comprising 30 stocks, dropped 127.02 points to 81,669.13 in early trading, while the NSE Nifty, consisting of 50 stocks, fell 55 points to 24,891.50. Among the Sensex constituents, companies like IndusInd Bank, Tata Motors, Titan, Bajaj Finance, Sun Pharma, and UltraTech Cement were among the decliners. On the other hand, Kotak Mahindra Bank, Axis Bank, NTPC, and Adani Ports were among the gainers.

In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 indices were trading positively, while China’s SSE Composite index and Hong Kong’s Hang Seng index were down. Meanwhile, US markets closed higher on Monday, defying concerns surrounding the Israel-Iran conflict.

Market experts noted that despite the global geopolitical tensions, stock markets worldwide remained steady and resilient, largely due to retail investors taking advantage of market dips to buy stocks. These retail investors, undeterred by valuations, have been instrumental in buoying market sentiment. Over the last four trading days since the conflict’s onset, Foreign Institutional Investors (FIIs) sold stocks worth Rs 8,080 crore, an amount overshadowed by Domestic Institutional Investors (DIIs) purchasing equities worth Rs 19,800 crore. Retail fund inflows, particularly through Systematic Investment Plans (SIPs), have empowered DIIs to consistently buy stocks.

On the commodity front, global oil benchmark Brent crude rose by 0.53 percent to USD 73.62 per barrel. Exchange data indicated that FIIs offloaded equities worth Rs 2,539.42 crore on Monday, while DIIs bought equities worth Rs 5,780.96 crore. The previous trading day, the Sensex surged by 677.55 points or 0.84 percent to close at 81,796.15, and the Nifty gained 227.90 points or 0.92 percent to settle at 24,946.50.