Indian stock markets witnessed early declines as benchmark indices Sensex and Nifty dropped on Monday due to escalating crude oil prices amid growing geopolitical uncertainties. The 30-share BSE Sensex recorded a decrease of 19.38 points, settling at 78,479.79 points, while the 50-share NSE Nifty fell by 5.10 points to 24,567.45 points in initial trading.
Throughout the trading session, the BSE benchmark further declined by 158.62 points to reach 78,340.55, while the Nifty dipped 45.20 points to settle at 24,524.95.
Stocks like Eternal, State Bank of India, InterGlobe Aviation, Power Grid, NTPC, and Bharti Airtel led the decline within the Sensex pack, reflecting investor caution. In contrast, firms like Titan, Infosys, Tech Mahindra, and HCL Tech saw gains, providing a contrasting narrative.
The rise in crude oil prices significantly affected market sentiment. Brent crude, the global oil benchmark, climbed by 1.03 percent to trade at USD 84.41 per barrel. This surge stemmed from Iran’s stance on the Strait of Hormuz and recent attacks on Gulf shipping, raising geopolitical risks substantially. “Elevated crude prices remain a key risk,” stated Rajesh Palviya, Head of Research at Axis Direct.
Foreign Institutional Investors (FIIs) showed some positivity as they purchased equities worth Rs 480.24 crore on Friday. “The undertone of the market is mildly bullish, driven by stronger-than-expected Q1 results,” noted VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. This trend is encouraging, particularly as the majority of companies reporting earnings have exceeded expectations.
Investors observed an overall positive streak from FIIs, which has persisted since July, boosting market confidence. In a broader market context, Asian indices like South Korea’s KOSPI and Japan’s Nikkei 225 reacted positively, showing gains of over 1 percent in early trade.
On Friday, Indian markets closed lower, with the Sensex dropping 455.59 points or 0.58 percent to a close of 78,499.17. Similarly, the Nifty slipped 65.35 points, marking a 0.27 percent decrease to conclude at 24,570.65.
The global outlook remained mixed, with positive performances from US markets on Friday contributing to the cautiously optimistic tone observed in Asian markets early this week.
