Markets opened cautiously on Monday, with the BSE Sensex and NSE Nifty 50 trading marginally lower as elevated crude oil prices and unresolved tensions around the Strait of Hormuz weighed on sentiment, even as strong private bank earnings and a reversal in foreign institutional flows offered partial support.
At 9.20 am, the Sensex stood at 74,659.74, down 69.53 points or 0.09 per cent, against a previous close of 74,729.27 and an opening of 74,849.30. The Nifty 50 was at 23,121.85, shedding 24.30 points or 0.10 per cent from its Friday close of 23,146.15, having opened at 23,150.85.
Brent crude remained above $108 a barrel, while WTI hovered around $97–$98. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the Hormuz tensions and the resulting crude surge “will act as a strong headwind to the market… Even though the attractive valuations of large-caps and the appreciation of the rupee have turned the stance of FIIs towards India a bit positive, it is unlikely to sustain, given the high crude price.”
Iran reiterated that the Strait of Hormuz could reopen within six days if the United States accepts conditions relating to the U.S. blockade, sanctions, and a cessation of hostilities. No agreement has been reached, keeping shipping and energy supply risks elevated.
Asian markets added to the pressure, with Japan’s Nikkei 225 falling over 2 per cent and South Korea’s KOSPI dropping more than 1 per cent, before both pared some losses.
Wall Street ended lower in the previous session on concerns over AI investment spending and expensive technology valuations.
Hitesh Tailor, Technical Research Analyst at Choice Broking, said investors would closely track “Q2 earnings from major banks, movements in foreign fund flows and developments around the Strait of Hormuz, which could influence volatility through the holiday-shortened week.”
In a notable institutional shift, FIIs turned net buyers on Friday after 15 consecutive sessions of selling, recording equity purchases of approximately ₹1,166 crore. DIIs, however, ended their 45-session buying streak with net sales of approximately ₹3,661 crore.
Sectorally, energy stocks rose alongside crude prices, with ONGC gaining 1.44 per cent to ₹225.19. In autos, Eicher Motors advanced 1.08 per cent to ₹7,363. Cement gained ground, with UltraTech Cement up 1.04 per cent to ₹11,020. Pharma saw Cipla add 0.98 per cent to ₹1,338.10, while PSU banking stocks firmed up, with State Bank of India rising 0.95 per cent to ₹971.70.
Private banks and IT faced selling pressure. Axis Bank was the top Nifty loser, declining 3.84 per cent to ₹1,240.50, while HDFC Bank fell 1.60 per cent to ₹717.20. In IT, Infosys dropped 1.28 per cent to ₹1,146.30, reversing a portion of last week’s sharp sector-wide gains. TMPV shed 0.87 per cent to ₹284.35 and Shriram Finance in the NBFC space lost 0.62 per cent to ₹934.15.
Dr. Vijayakumar noted that Nifty’s 2.8 per cent gain last week, combined with better-than-expected IT and banking results, “have the potential to keep the market resilient… The market actions this week are likely to be stock-specific in response to the Q2 results.” He added that “large-caps outperforming the mid- and small-caps is a rational trend, and this is likely to sustain, going forward.”
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said the U.S. 10-year Treasury yield edging lower to 5.069 per cent, along with easing crude, offered “some relief from external pressures but fall short of providing a clear catalyst for a broader risk-on shift,” warning that a renewed rise in both metrics “would risk keeping the recovery concentrated in earnings-driven stocks.”
Technically, the Nifty faces immediate resistance at 23,150–23,200, with support at 23,000–22,900. Bank Nifty must clear the 56,000–56,100 zone to confirm that the recovery is broadening beyond IT.