Nifty Slips Below 23,400; India VIX Jumps Nearly 4%

Indian equity benchmarks extended losses as Monday’s session progressed, with selling pressure spreading across frontline and broader market indices. The Nifty 50 slipped below the 23,400 mark, falling 154 points, while the Sensex was down 0.59 per cent. The pressure was sharper in Banking stocks, with the Bank Nifty declining 714 points, or 1.32 per cent. Volatility also inched higher, as India VIX rose nearly 4 per cent to trade around the 16.8 level.

Geopolitical Tensions and Crude Oil Weigh on Sentiment

The weakness came amid a cautious global set-up, as fresh developments in the US-Iran conflict kept investors on edge. As per reports, US military struck Iranian radar and drone command-and-control facilities in Goruk and Qeshm Island over the weekend. Iran’s Islamic Revolutionary Guard Corps later said it had targeted an air base used by the US in response.

Adding to the uncertainty, Brent crude prices moved higher to $93.3 per barrel. For India, higher crude prices are a concern as they can increase the import bill, pressure the rupee, and raise inflation risks. This makes investors more cautious, especially in rate-sensitive and consumption-linked sectors.

PSU Banks Lead Sectoral Decline, Nifty IT Index Stands Out

Most sectoral indices were trading in the red, with Nifty PSU Bank falling over 2 per cent and emerging as one of the top drags. Broader markets also remained under pressure, as the Nifty Midcap 100 declined 1.33 per cent and the Nifty Smallcap index fell 0.75 per cent.

However, the Nifty IT index bucked the weak trend and emerged as the top sectoral gainer. According reports, IT stocks gained after strong earnings from US-based Snowflake lifted sentiment for Indian technology companies.

Disclaimer: The article is for informational purposes only and not investment advice.