Sensex, Nifty Open Higher But Gains Remain Capped As Crude Oil, Geopolitical Risks Weigh

Indian equity markets opened in positive territory on Monday, with IT stocks driving early gains despite concerns over elevated crude oil prices and ongoing geopolitical tensions.

The 30-share Sensex opened 89 points higher and further jumped up to 249 points during the early trade. Similarly, Nifty opened 33 points higher to further rise up to 61 points.

However, both the indices lost most of the gains. At around 10:30 am, Sensex was trading 86 points higher while Nifty was up 25 points.

Among the gainers, Infosys emerged as the strongest performer among Sensex stocks, rising 1.85%. HCL Technologies gained 1.14%, while Tata Steel advanced 1.12%. HDFC Bank, Tech Mahindra and TCS also traded higher.

IndiGo, Kotak Mahindra Bank, ICICI Bank, Hindustan Unilever, UltraTech Cement and NTPC were among other gainers.

Asian Paints led the laggards, declining 0.42%, followed by Titan, BEL, Adani Ports and Bharti Airtel.

Crude Oil, West Asia Tensions Weigh

The broader market also began mostly higher. The Nifty Smallcap 100 gained 0.69%, while the Midcap 50 and Midcap 100 rose 0.11% and 0.10%, respectively. India VIX, however, climbed more than 4%, signalling increased volatility.

Sectoral performance remained mixed, with private banks, realty and financial services gaining, while FMCG, auto, media and IT sectoral indices faced pressure despite gains in several major IT stocks.

Crude oil remained a major concern for investors. Brent crude was around $93.13 a barrel, while WTI stood at $85.69. Elevated oil prices, coupled with geopolitical uncertainty, could limit the market’s ability to sustain a sharp rally.

Investors are closely tracking the crude oil prices as the United States is set to announce fresh economic sanctions on Iran which may impact the potential supply of crude from the West Asian region.