3 min readJun 8, 2026 10:51 AM IST
The Indian stock and currency markets opened weaker on Monday, following other big global markets, as further escalation in the situation in West Asia raised crude oil prices and led to investors being cautious.
The National Stock Exchange’s (NSE) Nifty 50 index was down 186.95 points or 0.8% at 23,177.80 at around 10:15 AM. The BSE’s Sensex index was down 0.8% at 73,668.21. The Indian rupee fell to 95.32, having made its biggest single-day advance in two months of 0.9% to 94.94 on Friday after the Reserve Bank of India had announced measures to boost foreign inflow.
However, the timelines for when the RBI’s new frameworks are implemented is still awaited. Significant foreign inflow is expected into the Indian markets after these measures are implemented.
“There are strong headwinds for the market as trading begins for the week. The sharp cut of 4.18% in Nasdaq last Friday has rattled global markets, with tech-dominated South Korea and Taiwan facing a big sell-off. The escalation of conflict in West Asia, with Iran firing missiles at Israel in retaliation to Israel’s aggression in Lebanon, has hardened crude prices. Brent has moved above $96,” said VK Vijaykumar, chief investment strategist at Geojit Financial Services. “The jobs data from the US is good, and therefore, the Fed will not cut rates as President Trump wants. The rates are likely to be on hold for some time,” he added.
Bajaj Broking also said interest rates in the US may be kept on hold. “The primary driver behind the sudden shift in global sentiment was Friday’s blockbuster US non-farm payrolls report . The economy added 172,000 jobs, crushing expectations. While a strong labour market shows fundamental economic health, it also signals that the economy might still be running too hot,” the firm said.
As of Monday, the CME Fedwatch tool showed a 98% probability of the US Federal Reserve keeping interest rates on hold during their upcoming policy decision on June 17, up from a 97.2% chance on Friday.
In the stock market, many of the sectoral indices were deep in the red, with automobiles, IT, and financial services among the worst hit. IT names such as Wipro, TCS, and LTM fell 2-5% after the IT industry fell sharply globally on Friday, which was a breather in the global AI rally. Meanwhile, sectors such as pharmaceuticals, healthcare, and public-sector banks were up.
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Other Asian peers such as South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng were down 1-5% in early trade on Monday.
