Global tensions weigh on Dalal Street as Sensex slips, Nifty falls below 23,100

Indian equity markets opened the week on a cautious note on Monday as benchmark indices came under pressure amid rising geopolitical tensions and firm crude oil prices. The Sensex fell around 500 points in early trade, while the Nifty 50 slipped below the 23,100 mark, reflecting nervousness among investors.

The weakness followed a volatile week for global markets as tensions in West Asia escalated and crude oil prices moved higher. For an economy like India that relies heavily on oil imports, sustained rise in crude prices often raises concerns about inflation and fiscal pressure, factors that typically weigh on investor sentiment.

Market participants also remained watchful of foreign portfolio flows. With global risk appetite turning fragile, overseas investors have shown signs of caution toward emerging markets. Analysts said such phases often lead to profit booking in equities after a prolonged rally.

Sectorally, banking, metal and oil related stocks were among the key laggards in early trade. Defensive segments such as FMCG and select IT stocks offered some support to the broader market.

Despite the decline, analysts noted that domestic macro indicators remain stable and corporate earnings expectations continue to hold up. However, in the near term, global developments, particularly movements in crude oil and geopolitical signals, are likely to guide the direction of Dalal Street.