The BSE Sensex fell 596 points, or 0.7%, to 81,774 in Monday morning trade, halting gains from the previous session. The Nifty also dropped 0.7%, falling below 24,950 amid concerns over escalating geopolitical tensions. The index tracked a decline in US stock futures following the US attack on Iran’s nuclear facilities over the weekend.
Rising oil prices weighed on sentiment amid worries about a potential closure of the Strait of Hormuz, which could accelerate domestic inflation in India, the world’s second-largest crude oil importer. Offsetting some of the losses, India’s private sector saw its strongest growth in 14 months in June, with factory activity and the services sector expanding at their fastest pace in 14 and 10 months, respectively. Almost all sectors moved into the red, led by technology, consumer durables, and healthcare. Among the biggest decliners were Infosys, which sank 2.5%, followed by Mahindra & Mahindra (-1.8%), Hindustan Unilever (-1.8%), and JSW Steel (-1.7%).
