Mumbai, June 2 (IANS): Indian equity markets 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, while Nifty opened at 23,229.15, lower by 153.45 points or 0.65 per cent. Sectoral indices including Nifty Auto, Realty and Chemicals slipped nearly 1 per cent, while private banks, PSU banks, cement and media stocks also faced pressure. In contrast, IT stocks provided some relief, with Nifty IT surging nearly 2 per cent. Bajaj Finance, Bajaj Finserv, Apollo Hospitals, Shriram Finance, Max Healthcare, Power Grid, NTPC, Trent and SBI Life were among the top losers. The volatility tracker India VIX declined more than 2 per cent to 16, reflecting mixed investor sentiment. Analysts pointed to elevated crude prices, geopolitical risks and weak monsoon projections as key factors weighing on the market.
They noted that the IMD’s latest projection of monsoon rains at 90 per cent of the long-term average could negatively impact growth and inflation, raising concerns for the agriculture sector as the weakest monsoon in 11 years looms. Analysts added that a resolution of the West Asia conflict and a decline in crude prices would be a major positive, though expectations have repeatedly been disappointed. They advised investors to stick to fundamentals, maintain asset allocation based on risk appetite, and remain patient. On the commodities front, Brent crude fell 0.67 per cent to $94.34 per barrel, while US WTI declined 0.75 per cent to $91.46. Asian markets showed a mixed trend, with Japan’s Nikkei down over 2 per cent and South Korea’s KOSPI slipping nearly 3 per cent, while Hong Kong’s Hang Seng gained about 1 per cent. Overnight, Wall Street ended mildly positive, with the S&P 500 up 0.42 per cent and Nasdaq closing 0.26 per cent higher.