Rising Crude Prices Keep Indian Markets in the Red

Indian equity markets extended their decline for a fifth straight session, pressured by elevated crude oil prices. Benchmark indices Nifty 50 and BSE Sensex closed in the red. While some sectors saw gains, overall sentiment remains cautious due to rising energy costs and ongoing global conflicts.

The Indian equity markets extended their losing streak to a fifth consecutive session on Monday, impacted by rising crude oil prices that continued to dampen investor sentiment. The Nifty 50 index dropped 78.35 points or 0.32%, closing at 24,287.65, while the BSE Sensex fell 281.09 points or 0.36% to settle at 77,728.16.

According to Vinod Nair, Head of Research at Geojit Investments, energy-led input cost pressures are affecting near-term market moods. However, stronger-than-expected Q1FY27 earnings, due to pricing actions and volume growth, might lead to earnings upgrades in forthcoming quarters, though higher replenishment costs could hinder margin expansion in Q2FY27.

Sectoral performance showed mixed trends on the NSE: Nifty IT declined by 1.84%, Nifty Pharma slipped 0.31%, and Nifty PSU Bank fell 0.12%. Conversely, Nifty Auto gained 0.23%, Nifty Media rose 0.42%, Nifty Metal climbed 1.39%, and Nifty Private Bank increased 0.69%. Top gainers included Hindalco and Tata Steel, while HCL Tech and Infosys emerged as top losers.

Hariselvan Radhakrishnan, CEO of HST Wealth, noted the market's cautious tone amid recovering from intraday lows. He emphasized that sustained high crude oil prices, exacerbated by unresolved Gulf conflicts, pose significant risks for Indian markets.

With India heavily reliant on oil imports, the persistent rise in energy costs keeps investors wary as benchmark indices approach critical technical levels. Brent crude oil was trading at USD 89.42 per barrel, up 1.01%.

Meanwhile, on Monday, gold prices increased 0.41% to Rs 1,55,139 per 10 grams for 24-karat gold, while silver prices rose 0.56% to Rs 2,37,254 per kg. Contrastingly, Asian markets mostly recorded gains: Japan's Nikkei 225 rose by 0.72%, and Hong Kong's Hang Seng index saw a 1.37% increase.