Key domestic benchmark indices–Sensex and Nifty– fell in early trade on Monday as crude oil prices surged on geopolitical uncertainty.
The 30-share BSE Sensex fell 19.38 points to 78,479.79. The 50-share NSE Nifty fell 5.10 points to 24,567.45. Later in trade, the BSE benchmark declined further by 158.62 points to 78,340.55, and the Nifty lost 45.20 points to 24,524.95.
Top Losers And Gainers
From the Sensex basket, Eternal, State Bank of India, Indigo, Power Grid, Bharti Airtel, and NTPC were among losers. On the other hand, Titan, Infosys, HCL Tech, and Tech Mahindra were among the winners.
Meanwhile, Brent crude, the global oil benchmark, was trading one per cent higher at a level of $84-85 per barrel.
“Elevated crude prices remain a key risk. Brent crude has risen for the third consecutive session to around USD 84.4 a barrel after Iran indicated no immediate reopening of the Strait of Hormuz, while weekend attacks on Gulf shipping have kept the geopolitical risk premium elevated,” Rajesh Palviya, Head of Research, Axis Direct, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 480.24 crore on Friday, according to exchange data.
“The undertone of the market is mildly bullish. The principal bullish factor is the better-than-expected Q1 results. With the earnings season coming to an end this week, the vast majority of companies have reported earnings growth that has beaten expectations,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
He said that FIIs returning as buyers in July and continuing to buy for most of August is another positive factor.
In Asian markets, South Korea’s KOSPI, Japan’s Nikkei 225 Index, Shanghai’s SSE Composite Index, and Hong Kong’s Hang Cheng Index are all up.
U.S. markets closed in positive territory on Friday.
“Asian markets are trading higher in early trade, with Japan’s Nikkei 225 and South Korea’s Kospi each advancing more than 1 per cent, providing a constructive backdrop for regional equities,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Friday, the benchmark Sensex fell 455.59 points, or 0.58%, to 78,499.17. The Nifty fell 65.35 points, or 0.27%, to close at 24,570.65.