Markets opened on a cautious note Monday morning, with the Sensex and Nifty slipping marginally as rising crude oil prices and escalating geopolitical tensions in West Asia dampened investor sentiment.
The Sensex, which closed at 73,319.55 on Friday, opened at 73,477.53 but quickly slipped to 73,198.81, down 120.74 points or 0.16 per cent, as of 9.20 am. The Nifty 50, which had closed at 22,713.10, opened at 22,780.30 before easing to 22,699.85, down 13.25 points or 0.06 per cent.
The mood on the street was set by crude oil prices surging after US President Donald Trump threatened to intensify military strikes on Iran if it fails to reopen the Strait of Hormuz. Brent crude futures were trading at $109.78 per barrel, up 0.69 per cent, while WTI crude was at $111.52. On the domestic Multi Commodity Exchange, April crude oil futures were at ₹10,387, down 0.20 per cent, while May futures rose 0.87 per cent to ₹9,273.
“With uncertainty over the West Asia conflict looming large, the market will continue to be volatile responding to potential good and bad news,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “If, by any chance, the Hormuz Strait is opened, the market will respond positively even if the conflict continues.”
Trump, who had set an April 7 deadline for Iran to comply, warned of what he termed “Power Plant Day and Bridge Day” — targeting critical civilian infrastructure — if negotiations failed. However, he also expressed optimism over a potential deal, extending the deadline to Tuesday at 8.00 PM EST.
Foreign institutional investors extended their selling streak, offloading equities worth ₹9,931 crore in the previous session. FII short positions remain elevated at around 83 per cent, marking 23 consecutive sessions of net selling in the cash market. Domestic institutional investors cushioned some of the fall, buying equities worth over ₹7,200 crore.
“The sharp correction in banking, particularly in private sector banks, is only due to sustained FII selling,” said Vijayakumar. “The fundamentals of the sector are strong and leading indicators suggest healthy deposit and credit growth. Patient investors will be rewarded.”
India VIX rose 2.04 per cent to close at 25.52, reflecting elevated fear in the market. In the derivatives segment, significant call writing was seen at the 22,800 and 23,000 strikes, while put writing activity was concentrated at 22,500 and 22,600 levels.
Among Nifty 50 gainers, Trent led with a 4.37 per cent rise to ₹3,705.70, followed by Wipro, up 2.52 per cent to ₹199.83. Hindalco gained 1.44 per cent to ₹929.40, Power Grid rose 1.29 per cent to ₹293.70, and Infosys added 1.11 per cent to trade at ₹1,315.30. The IT sector was broadly outperforming. “There is a short-term trade in IT since Q4 results will be better than expectations and the segment will benefit from the depreciation in rupee,” said Vijayakumar.
On the losing side, IndiGo and Kotak Mahindra Bank fell the most, each declining 1.83 per cent to ₹4,116.60 and ₹351.45, respectively. Sun Pharma dropped 1.16 per cent to ₹1,673.90, Tata Steel slipped 1.13 per cent to ₹191.94, and Reliance Industries fell 1.09 per cent to ₹1,335.80.
“Brent crude sustaining in the $105–110 range is becoming a critical pressure point for economies like India, as it directly impacts inflation, currency stability, and fiscal balance,” noted Ponmudi R, CEO of Enrich Money, a SEBI-registered trading and wealth tech firm.
The week ahead carries additional weight, with the Reserve Bank of India’s Monetary Policy Committee meeting being the first since the outbreak of hostilities — making it a closely watched event for rate guidance in a volatile macro environment.
“Near-term direction will largely be dictated by global cues, particularly geopolitical developments and crude oil movement,” said Hariprasad K, Founder of Livelong Wealth. “Until volatility cools and key resistance levels are reclaimed, a cautious and selective approach remains essential.”