Indian stock market ended Monday’s trading session lower, with the Sensex declining 171.72 points, or 0.22%, to 77,369.11, while the Nifty 50 fell 32.95 points, or 0.14%, to 24,219.05. The market remained volatile as investors assessed developments around US-Iran tensions, crude oil prices and the outlook for inflation.

Key Highlights

• Indian stock market closed lower as Sensex and Nifty slipped amid global uncertainty.

• Crude oil prices and geopolitical tensions weighed on investor sentiment during trade.

The Sensex opened higher but surrendered its gains during the session. It touched an intraday low of 77,201.66, while the Nifty slipped to 24,144.30 before recovering some ground by the close. The subdued performance came amid cautious global sentiment and uncertainty over upcoming US sanctions on Iran.

Crude Oil, Geopolitical Risks Weigh on Sentiment

Crude oil remained a key concern for investors as geopolitical tensions surrounding Iran and the Strait of Hormuz continued to influence energy markets. Although oil prices eased from recent levels, they remained elevated, keeping concerns over India's import bill, inflation and corporate costs alive.

The Indian rupee also ended marginally weaker at Rs 95.74 against the US dollar, compared with Rs 95.70 in the previous session.

Vinod Nair, Head of Research at Geojit Investments, said caution remained dominant as investors awaited details of fresh US sanctions on Iran. He noted that Brent crude remained above the $90-per-barrel level, supported by concerns over tighter Iranian supplies and continuing tensions around the Strait of Hormuz.

Nair added that the combination of geopolitical uncertainty, elevated crude prices and the RBI's recent hawkish stance pushed domestic bond yields higher, weighing on overall risk appetite.

Also Read: Indian Stock Market Weekly Report: Nifty and Sensex End Lower

Metals Outperform, Banking Stocks Under Pressure

Sectoral performance remained mixed. Metal stocks outperformed amid firm commodity prices, while banking shares faced selling pressure.

Public-sector banks were particularly weak as higher sovereign bond yields resulted in mark-to-market losses. Private sector banks stock also remained under pressure, contributing to the broader weakness in benchmark indices.

Meanwhile, sugar stocks remained in focus, with sugar and rice companies among the areas attracting investor attention amid festive demand and climate-related concerns. Recent market activity also showed strength in select sugar-related stocks.

Overall, investors remained cautious as global geopolitical developments, crude oil movements, bond yields and currency trends continued to shape the Indian stock market direction. With uncertainty surrounding Iran sanctions still high, market volatility could remain elevated in the near term.