Indian Shares Open Lower Amid Middle East Tensions and US Rate-Hike Bets

Indian shares opened lower on Monday after recording four consecutive weekly declines, as escalating tensions in the Middle East and growing expectations of a U.S. interest rate hike in September weakened investor sentiment. The Nifty 50 fell 0.19% to 23,852.55, while the BSE Sensex declined 0.17% to 76,383.49 by 9:23 a.m. IST.

IT stocks led the broad-based decline, with the Nifty IT index dropping 1.7% following stronger-than-expected U.S. jobs data. The robust employment figures increased market expectations that the U.S. Federal Reserve could raise interest rates this month. Higher U.S. rates could pressure corporate spending and weigh on Indian IT companies that rely heavily on the U.S. market for revenue.

Fourteen of the 16 major sectors were trading in negative territory. Small-cap and mid-cap stocks also slipped around 0.2% each, as rising crude oil prices and heightened U.S.-Iran tensions further reduced investors’ appetite for risk. New pre-open session rules aimed at aligning the process with India’s recently introduced closing auction session also came into effect on Monday.

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