The domestic equity market extended its decline on Monday, the first trading session of the week, amid global economic uncertainty, rising tensions in West Asia, higher crude oil prices and weakness in the Indian rupee.
The BSE Sensex opened 430.02 points, or 0.57 percent, lower at 74,807.97, while the NSE Nifty 50 declined 161.30 points, or 0.68 percent, to open at 23,482.20.
Selling pressure was visible across most major sectors during early trade. Market participants remained cautious amid continued volatility in global markets, while geopolitical tensions in West Asia and rising oil prices weighed on investor sentiment.
The rise in international crude oil prices has increased concerns for the Indian economy, which imports a significant portion of its energy requirements. Higher oil prices could impact inflation, trade deficit and corporate costs. Weakness in the Indian rupee also added to investor concerns as a weaker currency could further increase import costs and add pressure on the markets.
Among the 30 Sensex constituents, only three stocks traded in positive territory during early trade, while the remaining 27 stocks opened lower.
Shares of Infosys gained 0.36 percent, emerging as the top gainer among Sensex stocks. Shares of Tata Consultancy Services and Tech Mahindra also traded marginally higher.
On the downside, shares of Tata Steel declined around 3.78 percent, marking the steepest fall among Sensex constituents.
Banking and financial stocks also remained under pressure. Shares of State Bank of India fell 1.67 percent, while HDFC Bank declined 1.60 percent in early trade.
Other banking stocks including Kotak Mahindra Bank, Axis Bank and ICICI Bank also traded lower. In the financial sector, shares of Bajaj Finance and Bajaj Finserv registered declines.
Infrastructure, automobile and energy sector stocks also witnessed weakness. Shares of Larsen & Toubro, Mahindra & Mahindra and Maruti Suzuki opened lower.
In the energy sector, shares of Power Grid Corporation of India and NTPC also remained under pressure. Shares of Reliance Industries, Adani Ports and Special Economic Zone and Bharti Airtel traded in negative territory during early trade.
