FX.co ★ India Stocks Begin the Week Lower

The BSE Sensex declined by 596 points, equating to a 0.7% decrease, reaching 81,774 during Monday morning's trading session, effectively pausing the gains from the previous day. Similarly, the Nifty 50 also experienced a 0.7% drop, slipping below 24,950 due to growing worries over escalating geopolitical tensions. This downturn was influenced by a decline in US stock futures triggered by the US military actions targeting Iran’s nuclear facilities over the weekend. The rising oil prices exacerbated concerns, particularly with apprehensions about a potential shutdown of the Strait of Hormuz, which could swiftly elevate domestic inflation levels in India, the second-largest importer of crude oil globally. However, some losses were mitigated by the strength of India's private sector, which experienced its most robust growth in 14 months in June, with both manufacturing output and the services sector expanding at their quickest rates in 14 and 10 months, respectively. Despite this, nearly every sector faced downturns, especially technology, consumer durables, and healthcare. Notable losers included Infosys, which dropped by 2.5%, followed by Mahindra & Mahindra, Hindustan Unilever, and JSW Steel, with each falling 1.8%, and 1.7%, respectively.