Domestic benchmark indices Nifty 50 and Sensex opened lower on Monday, 28 September, as investors remained cautious after the benchmarks recorded their longest weekly losing streak since 2020. Rising crude oil prices amid a stalemate in US-Iran peace talks added to the pressure.
The Nifty 50 fell 0.33% to 23,064.90, while the BSE Sensex declined 0.22% to 73,734.83 at 9:15 AM IST. However, selling intensified thereafter, with both indices falling more than 1% around 9:45 AM. The Nifty 50 also slipped below the 22,900 level for the first time since 7 April.
US President Donald Trump said he had rejected an Iranian proposal to reopen the Strait of Hormuz and end the fighting. Iran, meanwhile, maintained on Sunday that diplomacy was the only way to resolve its conflict with the US and Israel.
Market weakness was broad-based, with 14 of the 16 major sectors trading lower. The broader small-cap and mid-cap indices also declined around 0.2% each.
Meanwhile, Brent crude futures climbed 2% to around $106.50 per barrel, while Asian markets were down 0.2%.
For India, higher crude prices remain a key concern as the country is the world’s third-largest crude oil importer. A sustained rise in oil prices could increase the import bill, add to inflationary pressures and weigh on corporate margins.
