The Indian stock markets opened lower on Monday as the benchmark indices, Sensex and Nifty, slid due to a significant spike in crude oil prices influenced by geopolitical uncertainties. As of early trading, the 30-share BSE Sensex fell by 19.38 points to 78,479.79, while the 50-share NSE Nifty declined by 5.10 points to 24,567.45.
As trading progressed, the BSE benchmark further slid 158.62 points, settling at 78,340.55, while the Nifty dropped by 45.20 points to reach 24,524.95. Key stocks from the Sensex pack such as Eternal, State Bank of India, InterGlobe Aviation, Power Grid, NTPC, and Bharti Airtel reported notable declines.
Contrasting with this, companies like Titan, Infosys, Tech Mahindra, and HCL Tech emerged as gainers during this period. The situation in global oil markets affected investor sentiment significantly, with Brent crude, the international oil benchmark, trading up by 1.03 percent at USD 84.41 per barrel.
Rajesh Palviya, Head of Research at Axis Direct, highlighted the rising crude prices as a fundamental concern. “Elevated crude prices remain a key risk. Brent crude has risen for the third consecutive session to around USD 84.4 a barrel after Iran indicated no immediate reopening of the Strait of Hormuz, while weekend attacks on Gulf shipping have kept the geopolitical risk premium elevated,” Palviya stated.
Despite these challenges, foreign institutional investors (FIIs) displayed a positive sentiment by purchasing equities worth Rs 480.24 crore last Friday. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted, “The undertone of the market is mildly bullish. The principal bullish factor is the better-than-expected Q1 results. With the earnings season ending this week, the vast majority of companies have reported earnings growth that has surpassed expectations.”
Vijayakumar added that FIIs have shown consistent buying activity throughout July and continued into August, indicating optimistic investor sentiment. In Asian markets, key indices including South Korea’s KOSPI and Japan’s Nikkei 225 index showed upward momentum, enhancing investor optimism.
Asian markets reflected a constructive backdrop for regional equities with Japan’s Nikkei 225 and South Korea’s KOSPI each gaining more than 1 percent in early trade. Ponmudi R, CEO of Enrich Money, emphasized the positive trend, stating, “Asian markets are trading higher in early trade, providing a constructive backdrop for regional equities.” Meanwhile, US markets concluded the previous Friday on a positive note.
On the prior trading day, the Sensex experienced a notable drop, declining by 455.59 points, equivalent to 0.58 percent, to close at 78,499.17. Similarly, the Nifty fell by 65.35 points, or 0.27 percent, ending at 24,570.65. The ongoing fluctuations in crude oil prices remain a significant influence on market trends, as investors continue to brace for further developments in the geopolitical arena.
