Markets open lower as crude surge, FII selling and geopolitical jitters weigh on sentiment

Markets opened lower on Monday, September 28, 2021, as geopolitical tensions over the Strait of Hormuz and a surge in crude oil prices weighed on investor sentiment. The Sensex opened at 73,734.83, down 0.83 percent from Friday's close, while the Nifty 50 began at 23,064.90, slipping 0.88 percent. Only three stocks on the Nifty 50 were in the green, with Dr Reddy’s Laboratories leading gains.

The market has endured eight consecutive weeks of losses, with the Nifty and Sensex eroding nearly 7 percent over the past two months. Sharp declines were observed in Adani Enterprises, Hindalco, Max Healthcare, and Kotak Mahindra Bank. Experts attribute the market's weakness to the spike in crude oil prices, with Brent crude surpassing $105 a barrel following US President Donald Trump's rejection of Iran's proposal to reopen the Strait of Hormuz.

Foreign institutional investors remained net sellers, while domestic investors partially offset the losses. Analysts warn of potential declines toward the 22,600–22,580 range on the Nifty, with 23,300 and 23,500 identified as key resistance levels. The market will also react to upcoming data releases, including auto sales, GST collection, and US non-farm payrolls.