Stock Market Closing: Domestic equities ended lower on Monday, weighed down by weak global cues and persistent geopolitical tensions. Benchmark indices remained under pressure for most of the session, with broad-based selling seen across sectors.
The BSE Sensex, after hitting an intraday low of 74,203.68, ended the session at 74,267.34, down 508.40 points or 0.68 per cent. The NSE Nifty50 settled at 23,382.60, down 165.15 points or 0.70 per cent. During the day Nifty50 swung between 23,733.70 and 23,357.95. Sensex and Nifty opened in green today. The BSE Sensex started at 75,203.02, while the Nifty 50 opened at 23,654.50.
Here’s are the key factors behind the share market fall:
US-Iran War
Iran‘s Foreign Ministry on Monday stated that a ceasefire in Lebanon remains a crucial prerequisite for any agreement with the United States. “We insist that a ceasefire in Lebanon is an essential condition for any deal aimed at ending the war,” Foreign Ministry spokesperson Esmail Baghaei said during a weekly press briefing, as Israel continues to intensify its military operations in Lebanon.
Israeli troops have carried out their deepest advance into Lebanon in more than 25 years, despite a nominal US-brokered ceasefire and the first direct Israel-Lebanon negotiations in decades. The development has complicated efforts to sustain the Iran war ceasefire, with Tehran linking any broader agreement to an end to hostilities in Lebanon.
Israel maintains that its operations are aimed at the Iran-backed Hezbollah militant group, which holds significant influence in southern Lebanon and has launched thousands of missiles and drones targeting Israeli forces in southern Lebanon as well as northern Israel.
Meanwhile, the United States struck Iranian radar installations and drone-control facilities after Tehran reportedly shot down an American MQ-1 Predator drone over the weekend. Iran confirmed carrying out a retaliatory attack, while Kuwait said it had intercepted incoming drones and missiles.
Rising Crude Prices
Oil prices moved higher on Monday after touching their lowest levels in six weeks, as investors reassessed the likelihood of a US-Iran agreement that could restore energy shipments through the Strait of Hormuz. Brent crude advanced toward $93 per barrel after closing Friday at its weakest level since mid-April, while US benchmark West Texas Intermediate hovered near $89 per barrel.
The rebound came amid renewed uncertainty surrounding negotiations between Washington and Tehran. Over the weekend, both countries exchanged proposed revisions to a draft agreement aimed at extending the existing ceasefire and facilitating the reopening of the Strait of Hormuz, a critical global oil shipping route. However, there were few signs suggesting that a final deal was close to being reached.
Weak Global Cues
Asian markets delivered a mixed performance on Monday as investors closely monitored developments in US-Iran talks after US President Donald Trump stated that he was in “no hurry” to secure an agreement aimed at ending the conflict.
South Korea led regional gains, with the KOSPI jumping 3.68 per cent to a record closing high of 8,788.38. However, the small-cap KOSDAQ index slipped 2.3 per cent to 1,050.03. Shares of Samsung Electronics surged more than 10 per cent, reaching an all-time high.
In Japan, the Nikkei 225 advanced 0.91 per cent to finish at 66,934.33, while the broader TOPIX index eased 0.42 per cent to 3,940.7. Australia’s S&P/ASX 200 closed largely unchanged at 8,729.4.
Chinese equities presented a mixed picture. Hong Kong’s Hang Seng Index gained 0.86 per cent in late trading, whereas mainland China’s CSI 300 fell 0.98 per cent to settle at 4,844.26.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
