Noida, Apr 6 (APAC Media): Indian equities extended their decline on Monday, April 6, as rising crude oil prices and escalating geopolitical tensions in the Middle East weighed on investor sentiment.
The benchmark BSE Sensex dropped 405 points, or 0.5%, to an early low of 72,914.16, while the Nifty 50 slipped 121 points, or 0.5%, to 22,591.70 after a flat opening.
Broader markets also remained under pressure, reflecting a cautious investor mood. The Nifty Midcap 100 index declined around 0.8%, while the Nifty Smallcap 100 index fell 0.7%, indicating widespread selling across sectors.
Asian markets
Market participants remained focused on the intensifying conflict between the United States and Iran. Donald Trump warned Tehran of severe consequences if it failed to reopen the strategically crucial Strait of Hormuz by Tuesday. His threats to target civilian infrastructure have heightened fears of retaliation and further escalation, raising concerns over global energy supply disruptions.
The oil prices continued to surge amid the uncertainty. U.S. benchmark crude rose to $111.92 per barrel, while Brent crude climbed to $110.74 per barrel, reflecting fears of prolonged conflict and tightening supply conditions. Elevated oil prices have added to inflation concerns, putting additional pressure on equity markets.
In contrast, several Asian markets that remained open for trading posted gains. Japan’s Nikkei 225 rose nearly 1.1%, while South Korea’s Kospi advanced 1.5%. However, trading volumes were thin as markets in Australia, Hong Kong, and China were closed due to holidays.
Gold, Silver Updates
Meanwhile, precious metals faced selling pressure. Gold and silver prices declined in international markets as a stronger U.S. dollar and rising Treasury yields reduced the appeal of non-yielding assets. Spot gold fell 1.2% to $4,620.68 per ounce, while silver dropped 1% to $72.28 per ounce.
Analysts noted that fading expectations of interest rate cuts by the Federal Reserve also contributed to the decline in bullion prices. A resilient U.S. labor market and rising yields have dampened hopes of near-term monetary easing.
With geopolitical risks, oil price volatility, and global monetary policy uncertainties in play, investors are expected to remain cautious in the near term.
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