Flat to negative opening seen for Indian stocks
Analysts expect trading to remain a low-key affair due to the shortened trading week
Indian stocks are expected to open flat or on a negative note on Monday, with analysts anticipating a cautious trend due to heavy Foreign Portfolio Investor (FPI) selling. The shortened trading week and renewed geopolitical uncertainty are factors contributing to the market's lackluster opening. Ponmudi R, CEO of Enrich Money, attributes the cautious outlook to the geopolitical tensions and a rebound in crude oil prices, which have negatively impacted investor sentiment.
The rejection of Iran's proposal to resolve the conflict and reopen the Strait of Hormuz has heightened concerns over potential supply disruptions, making oil prices the primary driver of global markets. Analysts also note that the derivatives structure has become distinctly cautious, with a higher Call-side positioning and significant Call concentration around 23,300–23,500.
A decisive break below this level could expose the index to further downside risk. Volatility has increased, with the India VIX jumping 22.64% to 12.6875, reflecting heightened market volatility following the sell-off. Foreign Portfolio Investors (FPIs) continued to sell equities, selling approximately ₹2,006 crore in secondary equities during the week, while primary-market investments amounted to ₹5,848 crore.
Analysts expect global events, such as US-Iran diplomacy and crude oil prices, to continue influencing market movement.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
