The Indian stock markets faced declines on Monday, with benchmark indices Sensex and Nifty experiencing downward movements due to rising crude oil prices triggered by geopolitical uncertainties.
The 30-share BSE Sensex recorded a dip of 19.38 points, settling at 78,479.79 in early trade. The 50-share NSE Nifty fell by 5.10 points to reach 24,567.45.
As trading progressed, the BSE benchmark further declined by 158.62 points, dropping to 78,340.55, while the Nifty edged lower by 45.20 points to land at 24,524.95.
Several stocks from the Sensex pack suffered as Eternal, State Bank of India, InterGlobe Aviation, Power Grid, NTPC, and Bharti Airtel emerged as notable laggards.
In contrast, shares of Titan, Infosys, Tech Mahindra, and HCL Tech fared better, remaining in the winners’ circle amidst the turbulent market.
The persistent increase in crude oil prices significantly affected market sentiments. Brent crude, the global oil benchmark, traded 1.03 per cent higher, costing USD 84.41 per barrel. 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 after Iran indicated no immediate reopening of the Strait of Hormuz, while weekend attacks on Gulf shipping have kept the geopolitical risk premium elevated.”
Despite these challenges, Foreign Institutional Investors (FIIs) displayed confidence, purchasing equities worth Rs 480.24 crore on Friday, according to 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 coming to an end this week, the vast majority of companies have reported earnings growth that has beaten expectations.”
Additionally, Vijayakumar highlighted the trend of FIIs consistently buying equities throughout July and August, which he sees as a positive indicator for the market.
In the wider Asian markets, indices showed positive movement. South Korea’s KOSPI, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index all reflected gains. Ponmudi R, CEO of Enrich Money, shared insights, stating, “Asian markets are trading higher in early trade, with Japan’s Nikkei 225 and South Korea’s Kospi each advancing more than 1 per cent, providing a constructive backdrop for regional equities.”
In the previous session, however, the Sensex experienced a drop of 455.59 points, approximately 0.58 per cent, settling at 78,499.17. The Nifty declined 65.35 points, around 0.27 per cent, ending at 24,570.65.
