MUMBAI: Indian stock markets started Monday on a slightly firm note but quickly lost ground, as rising tensions around Iran and the Strait of Hormuz kept investors on edge. Concerns grew after US President Donald Trump warned of severe consequences if Tehran fails to meet a deadline to reopen the crucial oil route.
The cautious mood comes at a time when global markets are reacting to the possibility of disruption in oil supplies and no clear progress in ceasefire talks. For India, which depends heavily on crude imports, the situation is being closely tracked by investors.
The 30-share Sensex fell around 150 points to trade near 73,168 in early deals. The Nifty also edged lower to around 22,670, shedding over 40 points. It did begin the day in the green, but that early push didn’t really hold for long.
Selling pressure was seen in several heavyweights, including Kotak Mahindra Bank, InterGlobe Aviation, Bajaj Finance, Tata Steel, and Sun Pharma. Some stocks declined up to 2 per cent.
At the same time, a few stocks such as Titan, Wipro, Hindalco, and Trent managed to hold gains.
Sector-wise, banking and auto stocks showed some early strength. Indices tracking PSU banks, private banks, auto and IT remained in the green initially. However, metals, pharma and realty stocks saw mild declines.
Broader markets were mixed. While some early gains were seen in wider indices, midcap and smallcap stocks later slipped around 0.5 per cent.
Volatility remained high, with the India VIX rising over 2 per cent. This suggests that investors are preparing for sharper moves in the days ahead.
Analysts said the market is reacting to a mix of global uncertainty and domestic triggers. Banking and market expert Ajay Bagga said the situation remains delicate, with the market reacting to the extended deadline given to Iran.
He noted that foreign investors continue to hold a heavy short position, which is adding pressure. “The market is on a knife-edge,” he said, pointing to the strong reaction expected from any fresh geopolitical development.
Foreign institutional investors sold equities worth nearly Rs 9,931 crore in the previous session, continuing their selling trend. Domestic investors stepped in to steady the market a bit, picking up shares worth over Rs 7,200 crore.
At the same time, rising oil prices are adding to the worry. Brent crude is hovering near $111 a barrel, while US crude has crossed $115, both close to their highest levels this year. Higher oil prices can push inflation up and affect corporate earnings.
Key triggers ahead for Dalal StreetMarket participants are now watching the Reserve Bank of India’s policy meeting later this week for cues. Any signals from the central bank could influence the short-term direction.
Experts also say that any easing in geopolitical tensions could quickly lift sentiment, as seen in recent sessions.
Technical analysts remain cautious. Shrikant Chouhan of Kotak Securities said charts still show a weak pattern, although a short-term bounce is possible. He identified the 22,400 to 22,500 range on the Nifty as a key support zone.
Sunil Gurjar of Alphamojo Financial Services said the charts show buyers are stepping in near key levels and trying to steady the market. But if those levels don’t hold, selling could pick up again.
Elsewhere in Asia, the mood was mixed. Japan’s markets moved up, while Hong Kong slipped. Wall Street had ended the previous session with small gains.
For now, all eyes are on the Strait of Hormuz. Any movement there matters, because it carries a big share of the world’s oil. That’s what’s keeping investors cautious.
Agencies
