Sensex Opens 428 Points Higher But Turns Flat, Nifty Loses Early 107-Point Gain Amid Peace Deal Uncertainty

Indian equity markets opened in positive territory on Monday but struggled to hold on to early gains as geopolitical uncertainties weighed on investor sentiment.

The BSE Sensex opened 428 points, or 0.57 percent, higher at 75,203 points compared to its previous close of 74,775 points.

Similarly, the NSE Nifty started the session 107 points, or 0.45 percent, higher at 23,654 points against Friday’s closing level of 23,547 points.

However, as trading progressed, both benchmark indices surrendered most of their gains and traded largely flat.

Investors Remain Cautious Over Global Developments

Market participants remained cautious amid uncertainty surrounding the proposed peace agreement between the United States and Iran.

While negotiations continue, investors are waiting for more clarity before taking large positions.

At the same time, foreign portfolio investors (FPIs) continued their selling activity, which added pressure on domestic markets.

Despite the weakness in benchmark indices, market breadth remained positive.

Around 1,700 stocks traded in the green on the National Stock Exchange, compared to nearly 1,451 declining stocks, indicating selective buying across sectors.

IT Stocks Lead The Rally

Information technology companies emerged as the biggest gainers during the session.

Shares of Infosys rose around 4.5 percent, making it the top performer among Nifty 50 stocks.

Tech Mahindra followed with gains of nearly 4 percent.

Other major technology stocks, including Tata Consultancy Services and HCLTech, also traded higher.

Metal stocks such as Tata Steel and Hindalco Industries gained ground.

Automobile companies including Maruti Suzuki and Eicher Motors also remained among the notable gainers.

FMCG Stocks Under Pressure

While technology stocks supported the market, some defensive sectors witnessed selling pressure.

Shares of Hindustan Unilever and Max Healthcare Institute were among the biggest losers, declining more than 1.3 percent each.

Among sectoral indices, Nifty IT was the top performer with gains of 3.55 percent.

Nifty Media also advanced 2.84 percent.

In contrast, Nifty FMCG emerged as the weakest sector, slipping 0.86 percent.

Rising Oil Prices Add To Market Concerns

Investor sentiment was also affected by rising crude oil prices following escalating tensions in the Middle East.

Israel’s expanded military operations in Lebanon raised concerns about regional stability and the future of broader peace negotiations.

Brent crude rose more than 2.1 percent to around $93 per barrel during Asian trading hours.

WTI crude climbed approximately 2.6 percent to nearly $90 per barrel.

Higher oil prices are often seen as a negative for India because the country imports a large portion of its energy requirements.

As a result, traders remained cautious despite the positive opening, leading to a largely flat market performance by midday.