Indian Markets Set to Open Lower as Oil Surge Dampens Sentiment
Indian benchmark indices are poised for a weaker start on Monday, tracking global risk-off sentiment after escalating Middle East tensions drove crude oil prices sharply higher. Gift Nifty futures were trading at 25,132, signaling that the NIFTY 50 will open below its previous close of 25,178.65. Brent crude climbed over 7% to around $82.40 per barrel — its highest level in 14 months — following intensifying Iran–Israel hostilities and the reported closure of the Strait of Hormuz, a key route for nearly 20% of global oil shipments and over 40% of India’s crude imports.
Analysts expect market focus to shift from earnings to oil prices in the near term, as rising crude heightens inflation risks and could push bond yields higher, pressuring equity valuations. Broader Asian markets also declined, reflecting investor caution. On Friday, Indian equities ended lower for a third straight monthly loss, weighed down by continued weakness in IT stocks. Foreign portfolio investors sold shares worth ₹75.36 billion, while domestic institutional investors provided support with net purchases of ₹122.93 billion, according to exchange data.
Oil marketing companies, paint and tyre manufacturers, aviation firms and chemical makers may face pressure from elevated crude prices, while upstream players such as Oil and Natural Gas Corporation and Oil India Limited could benefit from improved realizations. Separately, Aurobindo Pharma said the U.S. drug regulator concluded an inspection of its Telangana facility with four observations, while Brigade Enterprises launched a residential project in Chennai with an estimated gross development value of ₹17 billion.
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