Global Tensions and Crude Surge Rattle Indian Markets

Indian stock markets opened cautiously on Monday amid geopolitical tensions and rising crude oil prices. The NIFTY 50 and BSE Sensex started lower as concerns over Iran's unrest and persistent foreign fund outflows affected investor sentiment. Broader market indices and sectoral indices reflected this dampened mood.

On Monday, Indian stock markets experienced a hesitant start due to ongoing global geopolitical issues and a notable increase in crude oil prices. Investors remained wary as unrest in Iran and foreign fund outflows exerted pressure, dampening market sentiment at the opening bell.

The NIFTY 50 index saw an opening at 25,669.05, marking a slight decline of 0.06%, while the BSE Sensex also began the session in negative territory at 83,435.31, down by 0.17%. With global uncertainties prevailing, the market's risk appetite was visibly restrained, setting a cautious tone for the week's trading.

Ponmudi R, CEO of Enrich Money, highlighted that Indian equity markets are on a cautious footing amid global uncertainties. Volatility is expected to persist, especially in early trade sessions. Broader market trends in the coming days will hinge on global developments and upcoming inflation data, which could shift near-term investor positioning. Adding to concerns, crude oil prices climbed to USD 63.49 per barrel, impacting domestic equity sentiment further.

Selling pressure was apparent across the broader National Stock Exchange, with indices such as the Nifty 100, Nifty Midcap 100, and Nifty Smallcap 100 all recording slight declines. Most sectoral indices opened lower, except for Nifty Metal, Nifty PSU Bank, and Nifty Realty. Meanwhile, Nifty Auto, Nifty IT, Nifty Media, and Nifty Pharma all registered declines, contributing to the subdued market atmosphere.

Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, remarked on the underperformance of the Nifty 50, attributing this decline to global uncertainties, heavy FII selling, and rising crude oil prices. From a technical standpoint, the index remains weak, trading below its short-term EMAs, suggesting potential further downtrends.

Geopolitical tensions remain heightened as protests continue across Iran, stemming from economic discontent. In terms of fund flows, FIIs were net sellers on January 9, despite some support from DIIs. However, other Asian markets showed gains, with indices in Japan, Singapore, Hong Kong, Taiwan, and South Korea all recording positive movements.

(With inputs from agencies.)