Mumbai, June 2 (IANS) The Indian stock market opened lower on Tuesday amid geopolitical tensions and concerns over a weak monsoon forecast.
Sensex began the session at 73,945.20, down 322 points or 0.43 per cent from the previous close, while Nifty opened at 23,229.15, lower by 153.45 points or 0.65 per cent.
Sectoral indices, Nifty Auto, Nifty Realty and Nifty Chemicals were trading nearly 1 per cent lower. Private banks, PSU banks, cement and media indices were also under pressure. On the other hand, IT stocks traded higher, with Nifty IT surging nearly 2 per cent.
Meanwhile, Bajaj Finance, Bajaj Finserv, Eternal, Apollo Hospitals, Shriram Finance, Max Healthcare, Power Grid, NTPC, Trent and SBI Life emerged among the top losers from the Nifty pack.
The volatility tracker, India VIX, declined more than 2 per cent to 16.
Analysts said geopolitical tensions, elevated crude prices and weak monsoon concerns continued to weigh on investor sentiment.
“And now we have the additional threat of the IMD’s latest projection of monsoon rains at 90 per cent of the long-term average, which could have negative implications for growth and inflation,” according to them.
A resolution of the West Asia conflict and the consequent decline in crude prices would be a major positive, but expectations on that front have repeatedly been disappointed and the issue continues to weigh on sentiment, they added.
They further noted that investors should stick to fundamentals, maintain proper asset allocation based on risk appetite and financial goals, and remain patient.
The weather department has predicted the weakest monsoon in 11 years, raising worries about the agriculture sector.
On the commodities front, international benchmark Brent crude fell 0.67 per cent to $94.34 per barrel, while US West Texas Intermediate (WTI) declined 0.75 per cent to $91.46.
In Asia, markets showed a mixed trend. Japan’s Nikkei traded over 2 per cent lower, while South Korea’s KOSPI slipped nearly 3 per cent. Hong Kong’s Hang Seng, however, was trading about 1 per cent higher.
Overnight in the US, Wall Street ended mildly positive, with the S&P 500 gaining 0.42 per cent and the Nasdaq closing 0.26 per cent higher.
–IANS
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