Mumbai, March 23 (IANS) Domestic equity benchmarks opened the week sharply lower on Monday as escalating tensions in West Asia and surging crude oil prices weighed on investors’ sentiment.

Sensex fell 1,555.62 points or 2.08 per cent to 72,977.34 in early trade, while Nifty declined 479.95 points or 2.07 per cent to 22,634.55.

Sector-wise, metal, PSU bank and auto indices led the decline, falling up to 3 per cent in early trade. Stocks such as Tata Steel, Hindalco Industries, HDFC Bank, JSW Steel, Bajaj Finance and Shriram Finance were among the top laggards. All the sectors were in the negative territory in early trade.

Market participants turned risk-averse amid no signs of de-escalation in the ongoing US-Israel-Iran conflict, now in its fourth week, raising concerns over prolonged geopolitical instability.

Oil prices also surged amid fears of supply disruptions, with Brent crude trading near $113 per barrel, while US WTI crude rose over 3 per cent, adding to inflationary pressures globally.

Investor concerns were further heightened by developments around the Strait of Hormuz, a critical oil shipping route, even as reports suggested restricted access for certain vessels.

Analysts said markets have entered a risk-off phase amid rising geopolitical uncertainty and elevated oil prices.

“Global cues remain decisively weak, with heightened volatility and persistent foreign institutional investor selling weighing on sentiment,” they noted, adding that emerging markets, including India, remain vulnerable to external shocks.

Market experts said the Nifty remains under pressure, with immediate support seen around the 22,800 level, while resistance is placed in the 23,400–23,600 range.

Foreign institutional investors (FIIs) continued to remain net sellers, offloading equities worth Rs 5,518 crore in the previous session, while domestic institutional investors provided some support.

Analysts advised investors to remain cautious and avoid aggressive positions amid heightened volatility, suggesting accumulation of fundamentally strong stocks on declines.

Global cues remained weak, with major Asian indices witnessing sharp declines.

Japan’s Nikkei 225 plunged around 5 per cent, Hong Kong’s Hang Seng fell 3.5 per cent, and South Korea’s Kospi dropped nearly 6 per cent. US markets also ended lower in the previous session.

–IANS

ag/na