Benchmark indices opened on a muted note on Monday after logging their longest weekly winning streak of 2026, as investors balanced optimism over easing geopolitical tensions in West Asia with concerns over a weak monsoon and the upcoming earnings season.
The BSE was up 48.58 points, or 0.06%, at 77,149.05 at around 9:20 am, while the NSE Nifty50 gained 44.65 points, or 0.19%, to trade at 24,100.65 as of 9:23 am.
Markets have rallied sharply over the past two weeks, supported by falling crude oil prices, easing foreign investor selling and improving sentiment after renewed diplomatic engagement between the US and Iran reduced fears of disruptions to global oil supplies.
Brent crude traded around $72.40 per barrel, up 0.57% on the day but remaining below the key $73 mark. For India, a major crude importer, lower oil prices help ease inflationary pressures, improve the current account balance and support economic growth.
Sectoral trends were mixed in early trade.
The Nifty IT index declined 0.96%, making it the biggest sectoral laggard, while Nifty MidSmall IT & Telecom slipped 1.60%.
On the other hand, defensive sectors attracted buying. Nifty Pharma and Nifty Healthcare gained 1.09% each, while Nifty Metal advanced 0.65%. Nifty Financial Services also traded higher, rising 0.41%.
Broader markets were mixed, with the Nifty Midcap 50 edging up 0.09%, while the Nifty Smallcap 100 fell 0.35%.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, the biggest positive for Indian equities continues to be subdued crude oil prices.
He said that despite the continuing tensions between the US and Iran, Brent crude has remained below $73 per barrel as shipping through the Strait of Hormuz has continued uninterrupted, removing a major macroeconomic risk for India.
He also pointed out that relentless foreign institutional investor (FII) selling has eased considerably. FIIs have been net buyers in the cash market during the last nine trading sessions, although purchases have been modest. Another positive, he said, is that South Korean and Taiwanese markets, which had attracted large global inflows, have recently turned volatile, allowing Indian equities to outperform.
Vijayakumar cautioned that it is still too early to conclude that the market’s rally will continue uninterrupted.
He said the biggest concern remains the nearly 43% deficiency in monsoon rainfall so far this season. If rainfall improves in the coming weeks, market sentiment could strengthen further. Otherwise, concerns over rural demand and inflation may weigh on investor confidence.
He added that the June-quarter earnings season will soon become the key driver for markets, with stock-specific action expected to increase.
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