Equity benchmarks opened lower on Tuesday morning as surging crude oil prices and renewed geopolitical tensions around the Strait of Hormuz dampened investor sentiment, erasing early hopes of a continuation of April’s gains.
The Sensex, which closed at 77,269.40 on Monday, opened at 77,103.72 and was trading at 76,995.51, down 273.89 points or 0.35 per cent, as of 9.16 am. The Nifty 50, which had closed at 24,119.30, opened at 24,052.60 and slipped further to 24,017.90, down 101.40 points or 0.42 per cent at the same time.
Brent crude futures spiked as high as $115 intraday before settling at $113.24, down 1.05 per cent, while WTI crude was at $104.41, down 1.89 per cent. On the MCX, May crude oil futures were trading at ₹9,987, down 0.70 per cent from the previous close of ₹10,057, and June futures were at ₹9,616, down 0.73 per cent from ₹9,687. Reports of missile and drone strikes near the UAE and a US warship allegedly being targeted triggered the spike, with the Strait of Hormuz — which handles roughly 20 per cent of global oil supply — at the centre of the storm.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said: …”The resumption of hostilities in the Hormuz region and Brent crude again spiking to around $113 are headwinds for the market. Also the US 10-year bond yield rising to 4.44 per cent and the rupee sliding to 95.23 are unfavourable from the FPI flows perspective.”…
The rupee depreciated for the fourth consecutive session, falling 18 paise to close at a record low on Monday, pressured by dollar strength and elevated crude. The 10-year US Treasury yield climbed to 4.44 per cent, while the 30-year breached 5 per cent for the first time in months, as traders abandoned hopes of a Federal Reserve rate cut in 2026.
On Wall Street overnight, the Dow Jones fell more than 550 points while the S&P 500 and Nasdaq slipped 0.4 per cent and 0.2 per cent, respectively. Domestically, on the institutional front, Foreign Institutional Investors (FIIs) were net buyers of approximately ₹2,835 crore on Monday, while Domestic Institutional Investors (DIIs) bought ₹4,764 crore, offering a partial cushion to the fall.
Among Nifty50 gainers, energy major ONGC led, trading at ₹294.30, up 0.48 per cent from its previous close of ₹292.90. Adani Ports rose 0.42 per cent to ₹1,749.90 against a previous close of ₹1,742.60. TCS gained 0.24 per cent to ₹2,437.10, ITC edged up 0.23 per cent to ₹311.80, and Reliance Industries rose 0.23 per cent to ₹1,466.50.
On the losing side, Shriram Finance fell the most, down 1.59 per cent to ₹945.20 from ₹960.45. Bajaj Finance dropped 1.42 per cent to ₹936.70, Maruti Suzuki shed 1.22 per cent to ₹13,414, HDFC Bank fell 1.08 per cent to ₹771, and Bajaj Finserv declined 1.07 per cent to ₹1,751.40. The IT sector remained under pressure, while the Auto sector showed mixed signals with Maruti among the sharpest fallers.
Gaurav Udani, Founder of Thincredblu Securities, noted: …”23,900–24,000 remains immediate support, and holding this range is important to prevent further downside pressure. On the upside, 24,300–24,400 continues to act as the key resistance zone, where selling pressure is likely to emerge.”…
Shrikant Chouhan, Head of Equity Research at Kotak Securities, pointed to the 24,000/77,000 mark as a pivotal zone: …”Above these levels, the market could continue its positive momentum towards 24,300–24,400/77,700–78,000. On the flip side, below the 20-day SMA or 24,000/77,000, the market could retest 23,800.”…
The earnings season is now in focus, with results expected from Ambuja Cements, BHEL, Aditya Birla Capital, Godrej Properties, Larsen & Toubro, and Mahindra & Mahindra. Dr. Ravi Singh, Chief Research Officer at Master Capital Services, said: …”Stocks that rallied in April for genuine reasons will hold their ground. But those that simply rode the broader wave of optimism without any real substance will struggle to justify their valuations once the numbers are out.”…
Globally, central banks from the Eurozone to Japan remain cautious. The European Central Bank held rates steady amid war-linked energy uncertainty, the Bank of England is expected to follow suit, and the Bank of Japan is turning slightly hawkish as imported energy costs push inflation expectations higher. China faces slower industrial momentum, while stagflation risks are rising across developing Asia-Pacific economies facing fuel shortages.
Singh added a note of caution for retail investors sitting on the sidelines: …”Waiting for a big fall before investing sounds logical but rarely works. Time in the market beats timing the market.”…
Today also marks an F&O expiry session, which analysts expect will add to intraday volatility. India VIX remained elevated at around 18.3, signalling a reactive session ahead.