India's BSE Sensex concluded Monday's trading session with a decline of approximately 0.6%, settling at 81,896.8. This downturn mirrored the performance of major global indices as investors reacted to an escalation in the Middle East crisis. The situation intensified with the United States joining forces with Israel in a military offensive against Iran's nuclear sites, heightening concerns about potential disruptions to global energy markets and the emergence of a broader regional conflict. These developments have fueled a wave of risk aversion across financial markets.
On a more optimistic note, India's private sector demonstrated robust growth, marking its strongest expansion in 14 months this June. This was evidenced by significant advancements in manufacturing and the services sector, which grew at their most rapid rates in 14 and 10 months, respectively. However, IT stocks such as Infosys, TCS, and HCLTech emerged as major decliners. The sector felt the pressure from global economic uncertainties and rising geopolitical tensions. Additionally, apprehensions regarding prolonged challenges in global tech expenditure were exacerbated following Accenture's report of a third consecutive yearly dip in outsourcing contract volumes.
