All 16 major sectoral indices traded lower; gains in HDFC Bank limited the benchmarks’ decline.
Indian equities extended their opening losses on Monday as Brent crude held near $90 a barrel and investors increased bets on another interest-rate rise by the US Federal Reserve.
The Nifty 50 was down 0.68 per cent at 24,011.48 in morning trade, while the BSE Sensex had declined 0.58 per cent to 76,824.45, according to Reuters. All 16 major sectoral indices traded lower.
Information-technology shares fell approximately 2 per cent, while the broader small-cap and mid-cap indices declined about 1 per cent each. Reliance Industries lost around 1 per cent ahead of a reduction in its weighting in MSCI’s Global Standard Index.
HDFC Bank rose 1.5 per cent, partly limiting the benchmark indices’ losses. Chief Executive Sashidhar Jagdishan has announced that he will not seek another term when his tenure concludes in October. Some analysts interpreted the planned transition as an opportunity for a strategic and governance reset at the bank.
Brent crude climbed about 2.5 per cent after renewed US strikes on Iranian targets and retaliation by Tehran. Higher oil prices pose a direct risk to India’s import bill, inflation and currency because the country relies heavily on imported crude.
Markets were also preparing for MSCI’s index rebalancing at Monday’s close. Concentrated passive-fund orders will test India’s new Closing Auction Session. First-quarter GDP estimates due at 5.15 pm IST could further influence equities, bonds and the rupee.
