Mumbai: Domestic equity markets opened on a mildly positive note on Monday, even as caution over a possible escalation in the Iran war capped gains after US President Donald Trump warned of “hell” if Tehran fails to meet his Tuesday deadline to reopen the Strait of Hormuz.
However, early gains were short-lived. The 30-share Sensex declined by 150 points or 0.21 per cent to 73,168. Similarly, Nifty was trading at 22,670, down 42 points or 0.19 per cent in early trade, amid selling pressure in stocks such as IndiGo, Kotak Mahindra Bank, Tata Steel, Sun Pharma, Eternal, Bajaj Finance, M&M, JSW Steel and Dr Reddy’s, which fell up to 2 per cent.
Earlier, Nifty had opened at 22,780, rising 67 points or 0.30 per cent, while Sensex gained 158 points or 0.22 per cent to 73,477.53.
Sectoral indices were largely trading in the green in the opening trade, led by banking and auto stocks. The Nifty PSU Bank index gained 0.51 per cent, while the Nifty Private Bank index rose 0.30 per cent. Nifty Auto, Financial Services and IT indices were also in the positive zone.
Among broader markets, the Nifty 100, Nifty 200 and Nifty 500 indices advanced up to 0.31 per cent. Midcap and smallcap indices also traded higher with modest gains.
On the downside, the Nifty Metal index declined 0.22 per cent, while Pharma and Realty indices were marginally in the red.
Meanwhile, volatility remained elevated, with India VIX rising over 2 per cent, signalling continued caution among investors amid geopolitical uncertainties.
Analysts said markets remain cautious amid escalating Iran–Israel–US tensions, with no breakthrough in ceasefire talks so far. While US markets ended last week higher on strong jobs data, sentiment remains fragile due to rising crude prices and geopolitical risks.
They added that the RBI’s MPC meeting will be a key trigger this week, while any signs of de-escalation could support a market rebound. On the domestic front, improving trends in commercial vehicle sales indicate early signs of recovery in economic activity and earnings.
Market sentiment remained fragile amid geopolitical tensions, with investors closely monitoring developments around the Strait of Hormuz, a key global oil supply route.
On Thursday, the last trading session, foreign institutional investors (FIIs) extended their selling streak, offloading equities worth Rs 9,931 crore. In contrast, domestic institutional investors (DIIs) remained supportive, purchasing equities worth over Rs 7,200 crore.
Crude oil prices surged sharply, adding to concerns. Brent crude rose as much as 2 per cent to $111.23 per barrel, hovering near a 52-week high, while US WTI crude futures climbed 3.53 per cent to $115.48 as of 8:55 a.m.
In Asia, markets showed a mixed trend. Japan’s Nikkei traded around 1 per cent higher, while Hong Kong’s Hang Seng declined about 1 per cent. South Korea’s Kospi, however, gained nearly 1 per cent.
In the previous session, Wall Street ended marginally higher, with the S&P 500 closing at 6,582.69, up 0.11 per cent, and the Nasdaq rising 0.18 per cent to 21,879.18.
(IANS)
