Sensex, Nifty open lower as crude oil prices, geopolitical tensions weigh
The Nifty had closed Friday's session at 24,366 while the Sensex ended at 78,009.25; both indices opened lower, Nifty at 24,343.45 and Sensex at 77,892.92, before sliding further in early trade
Markets commenced on a subdued note on Monday, with the Nifty 50 declining 66.85 points or 0.27 percent to 24,299.15 and the Sensex slipping 305.23 points or 0.39 percent to 77,704.02, as surging crude oil prices and Middle East tensions weighed on investor sentiment. The Nifty concluded the previous Friday's session at 24,366, while the Sensex ended at 78,009.25.
Both indices initially opened lower, at 24,343.45 for the Nifty and 77,892.92 for the Sensex, before experiencing further declines in early trading. Brent crude hovered near $88.6 a barrel, having risen 5 percent over the previous week, placing pressure on India as an import-reliant economy. The rupee was trading close to 95.6 against the dollar, exacerbating the strain.
GIFT Nifty had forecasted a lackluster opening, projecting around 24,407 before the market's start. Rajesh Palviya, Head of Research at Axis Direct, stated that sustained recovery would necessitate the Nifty decisively surpassing 24,550, potentially paving the way for 24,800, with immediate support at 24,250 and 24,080. He added that any significant easing in crude prices could markedly bolster market sentiment.
Among Nifty 50 stocks, metals exhibited mixed performance. Hindalco emerged as the top gainers, surging 1.17 percent to ₹1,041.50, whereas JSW Steel was the biggest decliner, falling 1.36 percent to ₹1,252.70. The metal sector as a whole slipped 1.8 percent over the previous week. In the automotive sector, Eicher Motors rose 0.98 percent to ₹8,145.50, while Mahindra & Mahindra increased 0.46 percent to ₹3,444.
In the healthcare segment, Apollo Hospitals climbed 0.39 percent to ₹8,955. In the energy domain, ONGC edged up 0.34 percent to ₹237.20. On the downside, Dr. Reddy's Laboratories fell 1.09 percent to ₹1,186.90, State Bank of India declined 0.99 percent to ₹1,057.10, TCS dropped 0.94 percent to ₹2,338.70, and Jio Financial Services slipped 0.92 percent to ₹246.75.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, indicated that the market is likely to persist within the 24,000–24,600 range in the short term until a catalyst emerges to break the range, noting that crude trading at $89, with no immediate resolution to the crisis, is likely to cap any uptrend. In terms of sectors, mid-cap IT was outperforming large-cap IT significantly and this trend was expected to continue, while in pharma, there was a notable shift in performance away from traditional large pharmaceutical companies to contract manufacturing organizations, hospitals, and diagnostics firms.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, suggested that if the market managed to trade above 24,200/77,500, a sharp technical bounce back could occur, potentially reaching 24,500–24,700 for the Nifty and 78,400–79,000 for the Sensex. Asian markets were diverse, with Japan's Nikkei trading slightly lower after second-quarter GDP growth fell short of expectations.
South Korean markets were closed for Liberation Day. US markets had retreated on Friday after retail sales fell 0.6 percent month-on-month in July, below expectations of a 0.1 percent rise. The Fed's July meeting minutes, scheduled for Wednesday, remained a key point of interest for global markets and their implications for capital flows into emerging markets.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
