Indian benchmark equity indices opened on a cautious note on Monday, with the BSE Sensex and NSE Nifty trading nearly flat during the early hours of the session as investors remained watchful of global developments, rising crude oil prices and continued foreign fund outflows. The Indian rupee also slipped against the US dollar, adding pressure to overall market sentiment.
The BSE Sensex initially gained over 400 points during opening trade, while the Nifty moved above the 23,600 mark as investors attempted to recover from the sharp losses witnessed in the previous session. However, the early rally lost momentum as concerns surrounding global energy markets and foreign institutional investor (FII) selling continued to weigh on Dalal Street.
Market experts said investor sentiment remains fragile following the heavy sell-off recorded last week. Indian equity markets had witnessed one of their most volatile sessions in recent years after a combination of foreign outflows, MSCI index rebalancing and global geopolitical concerns triggered significant declines across major sectors.
A major factor influencing market mood is the ongoing uncertainty surrounding US-Iran negotiations. Rising tensions in the Middle East have pushed crude oil prices higher, raising concerns over inflation and energy costs for oil-importing countries like India. Brent crude prices moved higher amid fears that disruptions in the region could impact global supply chains and fuel prices.
The rupee also remained under pressure against the US dollar during early trade. Currency weakness has become a key concern for investors as it increases import costs and creates additional challenges for sectors dependent on overseas purchases. Analysts believe sustained pressure on the rupee could influence foreign investment flows and broader market performance in the coming weeks.
Despite the cautious mood, select sectors managed to outperform the broader market. Information technology stocks witnessed buying interest after strong global technology earnings boosted optimism around the sector. Shares of leading IT companies such as Infosys, TCS and Wipro attracted investor attention during early trade. Aviation and consumer-focused stocks also recorded gains following positive corporate updates and earnings announcements.
Market participants are also closely tracking foreign institutional investor activity. Recent data showed heavy FII selling in Indian equities, which has emerged as one of the primary reasons behind the market’s recent volatility. While domestic institutional investors have continued to provide support, analysts believe sustained foreign inflows will be necessary for a stronger market recovery.
Technical analysts noted that the Nifty remains in a consolidation phase, with support levels seen around the 23,200–23,300 range and resistance near the 23,750–24,050 zone. Traders are waiting for a decisive breakout before taking stronger directional positions in the market.
Global market trends, crude oil movements, currency fluctuations and developments related to geopolitical tensions are expected to remain key drivers for Indian equities in the near term. Investors are likely to stay cautious while monitoring economic indicators and international events that could influence market direction.
