Indian equity indices began Monday trading with modest declines, as reported by The Hindu BusinessLine. The BSE Sensex and NSE Nifty 50 both slipped slightly from their previous closing levels. This cautious start was driven by persistent concerns over high crude oil costs and unresolved geopolitical tensions in the Strait of Hormuz. Despite these headwinds, positive earnings from private banks and a reversal in foreign institutional investor flows provided some underlying support to the market structure.
Crude oil prices remained a dominant factor in investor sentiment. Brent crude held above $108 per barrel, while West Texas Intermediate traded between $97 and $98. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, explained that the oil price surge would act as a significant headwind. He noted that although large-cap valuations and rupee strength had slightly improved foreign institutional investor attitudes, sustainability remained doubtful given the elevated energy costs. Iran suggested the Strait of Hormuz might reopen within six days if the United States accepted specific conditions, but a formal agreement remained elusive, keeping shipping and energy supply risks high.
Sectoral performance was mixed, with energy and public sector bank stocks gaining ground. ONGC rose 1.44 percent, and State Bank of India added 0.95 percent. Conversely, private banks and information technology stocks faced selling pressure. Axis Bank emerged as the top Nifty loser, dropping 3.84 percent to ₹1,240.50. HDFC Bank fell 1.60 percent, and Infosys declined 1.28 percent, reversing part of the previous week’s sector-wide gains. This pattern indicated a shift toward defensive and earnings-driven stocks amid external pressures.
Institutional flow dynamics showed a notable shift. Foreign institutional investors turned into net buyers on Friday, ending a 15-session selling streak with purchases of about ₹1,166 crore. Domestic institutional investors, however, stopped their 45-session buying run, selling net ₹3,661 crore. Hitesh Tailor, Technical Research Analyst at Choice Broking, indicated that market participants would monitor Q2 bank earnings, foreign fund movements, and Hormuz developments. He warned these factors could drive volatility during the shortened holiday week. Technically, the Nifty encountered resistance between 23,150 and 23,200, with support levels at 23,000 and 22,900.