Market Today: Sensex Declines 291 Points, Nifty Opens Below 24,550 As Rising Oil Prices Weigh; IT Stocks Gain

The domestic equity market opened lower on Tuesday as rising crude oil prices and uncertainty over the US-Iran peace negotiations kept investors cautious. Weak global cues also weighed on sentiment, although gains in IT, auto, metal and consumer durable stocks provided some support.

As of 9:20 am, the BSE Sensex was down 291.10 points, or 0.37%, at 78,251.34, while the Nifty NSE declined 73.65 points, or 0.30%, to 24,510.15.

The weakness in Indian equities came amid higher crude oil prices. Brent crude rose to around $88 a barrel, while U.S. crude climbed to about $82.45 a barrel, after both contracts gained nearly 5% in the previous session. Oil prices remained elevated as negotiations between the U.S. and Iran over a potential peace agreement

and the reopening of the Strait of Hormuz showed signs of hitting an impasse.

Higher crude prices are a concern for India because the country is heavily dependent on imports to meet its energy requirements. A sustained rise in oil prices could put pressure on inflation, the trade deficit and the rupee, while also affecting corporate margins.

Asian Markets Remain Mixed

Asian equities were largely subdued as investors assessed the implications of higher oil prices and the global inflation outlook. MSCI’s broadest index of Asia-Pacific shares outside Japan was up around 0.2%, while South Korea’s Kospi gained 0.3%.

US equity futures were marginally positive, with Nasdaq futures rising 0.28% and S&P 500 futures gaining 0.1%, following losses on Wall Street in the previous session. Investors are also awaiting the U.S. July consumer price inflation data, which could influence expectations around the Federal Reserve’s interest-rate trajectory.

IT Stocks Outperform; Banks Drag

Sectoral trends on the domestic market were mixed in early trade. Nifty IT gained 0.83%, making it one of the best-performing sectors, while consumer durables rose 0.76%. Auto, metal, pharma and realty stocks were also trading higher.

In contrast, financial stocks remained under pressure. Nifty Private Bank fell 0.69%, Nifty Financial Services declined 0.68% and Nifty PSU Bank slipped 0.65%. FMCG and oil & gas stocks were also trading in the red.

Among individual Sensex stocks, HCL Technologies rose 1.22%, Tech Mahindra gained 1.05%, Titan advanced 0.98% and Infosys climbed 0.71%. On the other hand, IndiGo fell 2.18%, Bajaj Finance declined 0.96%, Axis Bank dropped 0.91% and Ultratech Cement slipped 0.83%.

The broader market was relatively resilient, with the Nifty Smallcap 100 rising 0.35%, while the Nifty Midcap 100 was nearly flat at -0.03%.

FIIs Could Provide Support If Buying Returns

V K Vijayakumar, chief investment strategist at Geojit Investments, said higher brent crude remains a key concern, but improving corporate earnings and stability in the rupee could support the market.

“Rising Brent crude price continues to be an irritant for the market even as other fundamentals exhibit strength,” Vijayakumar said.

He added that a significant positive trigger would be foreign institutional investors (FIIs) turning buyers, encouraged by better-than-expected first-quarter results and stability in the rupee. According to him, these factors could keep the market resilient with a slight upward bias.

Vijayakumar also highlighted the role of domestic consumption in sustaining earnings growth through FY27.

“Big FCNR (B) inflows can support the rupee, which, in turn, can facilitate more FII inflows,” he said, adding that FIIs are rotating capital away from the “chip trade” in South Korea and Taiwan and increasing their exposure to Indian equities.

Interestingly, he noted that foreign investors are putting money into relatively expensive sectors such as telecom, renewable energy, capital goods and pharmaceuticals, rather than attractively valued banking majors.

For the domestic market, therefore, 24,500 remains an important immediate level for the Nifty, while the index could face resistance around the 24,575-24,600 zone based on the early session’s price action. The market’s direction through the session is likely to remain sensitive to crude oil movements, global cues and FII activity.