Indian stock markets, including the benchmark indices Sensex and Nifty, experienced a decline in early trade on Monday as crude oil prices surged due to ongoing geopolitical uncertainties. The 30-share BSE Sensex fell 19.38 points to 78,479.79, while the 50-share NSE Nifty dipped 5.10 points to 24,567.45.
As trading progressed, the BSE Sensex further declined by 158.62 points, settling at 78,340.55, with Nifty slipping lower by 45.20 points to reach 24,524.95. This downward trend highlights investor concerns related to rising oil prices and their potential impact on the economy.
Among the Sensex stocks, Eternal, State Bank of India, InterGlobe Aviation, Power Grid, NTPC, and Bharti Airtel emerged as notable laggards. Conversely, Titan, Infosys, Tech Mahindra, and HCL Technologies were identified as winners during this trading session.
Brent crude, the global oil benchmark, traded 1.03% higher at USD 84.41 per barrel, indicating continued upward pressure. Rajesh Palviya, Head of Research at Axis Direct, stated, “Elevated crude prices remain a key risk. Brent crude has risen for the third consecutive session to around USD 84.4 a barrel following Iran’s indication of no immediate reopening of the Strait of Hormuz, coupled with attacks on Gulf shipping that have escalated geopolitical risks.”
Despite the early downturn, Foreign Institutional Investors (FIIs) bought equities worth Rs 480.24 crore on Friday, as reported by exchange data. 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 nearing its conclusion, the majority of companies have reported earnings growth surpassing expectations.”
According to Vijayakumar, the sustained buying trends by FIIs in July and August have contributed positively to market sentiments. “Their interest reflects confidence in the Indian market’s recovery,” he added.
In the broader Asian markets, South Korea’s KOSPI, Japan’s Nikkei 225, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index exhibited gains in early trading. The positive performance in U.S. markets on Friday, where major indices closed higher, provided a supportive backdrop. Ponmudi R, CEO of Enrich Money, observed, “Asian markets are trading higher in early sessions, with Japan’s Nikkei 225 and South Korea’s KOSPI both advancing over 1%, indicating a constructive environment for regional equities.”
On Friday, the Sensex recorded a drop of 455.59 points, or 0.58%, closing at 78,499.17. The Nifty also declined by 65.35 points, or 0.27%, to finish at 24,570.65. This recent volatility in the stock markets amid rising crude oil prices raises essential discussions regarding economic stability and investor response in the face of geopolitical risks.
