India’s BSE Sensex slipped about 0.2% in early trade on Monday, falling below 73,167 and giving up gains from the previous two sessions, as market sentiment turned cautious amid rising geopolitical tensions. Concerns intensified following renewed threats from US President Trump toward Iran, with Trump warning of severe consequences if the Strait of Hormuz is not reopened.
On the positive side, leading private-sector lenders including HDFC Bank, Kotak Mahindra Bank, and Axis Bank reported robust growth in both loans and deposits. This strength in the banking sector is expected to help cushion the downside and provide some support to overall market stability.
The Reserve Bank of India has also taken steps to reduce currency volatility and ease liquidity pressures. Measures include curbing speculative activity in the foreign exchange market, active liquidity management, and signaling continuity in monetary policy, all aimed at shoring up investor confidence.
On the macroeconomic front, final March readings for the HSBC Composite and Services PMIs are due later in the day, with consensus expectations at 56.5 and 57.4, respectively.
Among notable laggards, Latent View declined 3.7%, Reliance Industries fell 1.7%, Dixon Technologies slipped 1.1%, and Bharti Airtel eased 0.4%.
