The Indian stock markets opened lower on Monday as benchmark indices Sensex and Nifty experienced a downturn due to a spike in crude oil prices influenced by geopolitical tensions. The Sensex fell by 19.38 points to reach 78,479.79, while the Nifty slid 5.10 points, settling at 24,567.45.
As trading progressed, the BSE benchmark continued its decline, dropping 158.62 points to settle at 78,340.55. The Nifty followed suit, edging lower by 45.20 points to close at 24,524.95. This drop in the stock market reflects investor concerns regarding elevated crude oil prices and their potential impact on the Indian economy.
Among the significant laggards in the Sensex pack were Eternal, State Bank of India, InterGlobe Aviation, Power Grid, NTPC, and Bharti Airtel. In contrast, Titan, Infosys, Tech Mahindra, and HCL Technologies emerged as notable gainers during the early session.
The surge in crude prices came as Brent crude, the global oil benchmark, traded 1.03 per cent higher at USD 84.41 per barrel. Rajesh Palviya, Head of Research at Axis Direct, highlighted that the elevated crude prices cast a looming risk over the markets. “Brent crude has risen for the third consecutive session to around USD 84.4 a barrel after Iran’s statements regarding the Strait of Hormuz and weekend attacks on Gulf shipping,” Palviya stated.
In terms of foreign investments, foreign institutional investors (FIIs) bought equities worth Rs 480.24 crore on Friday. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted a mildly bullish market sentiment driven by better-than-expected Q1 results from numerous companies. With the earnings season nearing its end this week, the majority have reported growth exceeding expectations. “FIIs turning buyers in July and maintaining this trend throughout August adds a positive outlook,” Vijayakumar explained.
On the broader Asian front, stock markets showed resilience, with South Korea’s KOSPI, Japan’s Nikkei 225 index, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all registering gains. This trend provides a constructive backdrop for regional equities, as noted by Ponmudi R, CEO of Enrich Money, a wealth-tech firm. “Asian markets are trading higher, with Japan’s Nikkei 225 and South Korea’s Kospi advancing more than 1 per cent,” he mentioned.
The previous session saw the Sensex drop by 455.59 points, reflecting a 0.58 per cent decline to conclude at 78,499.17. The Nifty also faced a setback, sliding by 65.35 points, or 0.27 per cent, to finish at 24,570.65.
