Crude fears clip wings; Axis Bank dives 3.84% as Sensex, Nifty open flat
Technically, the Nifty faces immediate resistance at 23,150–23,200, with support at 23,000–22,900. Bank Nifty must clear the 56,000–56,100 zone to confirm that the recovery is broadening beyond IT
Markets opened on Monday with the BSE Sensex and NSE Nifty 50 trading marginally lower, as high crude oil prices and unresolved tensions around the Strait of Hormuz dampened investor sentiment. Despite strong private bank earnings and a shift in foreign institutional investor (FII) flows, the market remained cautious. At 9:20 am, the Sensex closed at 74,659.74, down 69.53 points or 0.09%, from its previous close of 74,729.27.
The Nifty 50 fell to 23,121.85, losing 24.30 points or 0.10% from its Friday close of 23,146.15. Brent crude oil remained above $108 a barrel, while WTI hovered around $97-$98. Analyst Dr. V K Vijayakumar of Geojit Investments warned that the Hormuz tensions and crude price surge would be a "strong headwind" to the market, despite attractive valuations of large-caps and a stronger rupee making FIIs more positive towards India.
No agreement has been reached to reopen the Strait of Hormuz, keeping shipping and energy supply risks elevated. Asian markets also contributed to the pressure, with Japan's Nikkei 225 falling over 2% and South Korea's KOSPI dropping more than 1%. Wall Street ended the previous session lower due to concerns over AI investment spending and high technology valuations.
Investors will closely monitor Q2 earnings from major banks, foreign fund flows, and developments around the Strait of Hormuz throughout the short holiday-shortened week. In a notable institutional shift, FIIs turned net buyers on Friday after 15 consecutive sessions of selling, purchasing equity worth approximately ₹1,166 crore.
However, DIIs ended their 45-session buying streak with net sales of around ₹3,661 crore. Energy stocks rose alongside crude prices, with ONGC gaining 1.44% to ₹225.19. In the auto sector, Eicher Motors rose 1.08% to ₹7,363. Cement also gained, with UltraTech Cement up 1.04% to ₹11,020. Pharma saw Cipla add 0.98% to ₹1,338.10, while PSU banking stocks, including State Bank of India, firmed up with a 0.95% increase to ₹971.70.
Private banks and IT faced selling pressure, with Axis Bank leading the Nifty losers, declining 3.84% to ₹1,240.50, and HDFC Bank falling 1.60% to ₹717.20. IT stocks, including Infosys, dropped 1.28% to ₹1,146.30, reversing a portion of last week's sharp gains. TMPV and Shriram Finance in the NBFC space saw declines of 0.87% and 0.62%, respectively, to ₹284.35 and ₹934.15, respectively.
Dr. Vijayakumar suggested that the market's resilience could be maintained by sector-specific performance, particularly from large-caps. He cautioned that a renewed rise in U.S. 10-year Treasury yields and crude prices could keep the recovery concentrated in earnings-driven stocks. The Nifty faces immediate resistance at 23,150-23,200, with support at 23,000-22,900, while Bank Nifty needs to clear the 56,000-56,100 zone to confirm a broader market recovery.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
