Indian equity markets witnessed significant volatility on Monday amid ongoing global geopolitical tensions and fluctuations in crude oil prices. After opening lower, the market recovered swiftly to trade in positive territory, with intraday movements remaining volatile.
At 10:40 am, the BSE Sensex was trading 363 points higher at 78,856.57, while the NSE Nifty 50 rose 89.30 points to 24,442.85.
Early Decline Followed by Recovery
The week began on a weak note as markets opened under pressure. The BSE Sensex declined 248 points to open at 78,245.84, while the Nifty 50 also registered a decline of over 60 points. However, following initial selling, buying interest returned, pushing both indices into positive territory.
Volatility in global markets was primarily driven by rising tensions in West Asia. Concerns surrounding tensions in the Strait of Hormuz influenced investor sentiment. The region is one of the world’s most critical oil transit routes, and any disruption directly impacts global energy supply and pricing.
Crude Oil Prices Rise Above $95 per Barrel
A sharp increase in crude oil prices added to market concerns. Brent crude oil prices once again crossed $95 per barrel. The rise in oil prices increases inflation risks, directly affecting corporate costs and consumer markets.
According to market participants, investors need to remain cautious in the current environment. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that the direction of tensions in West Asia after April 22 will determine the market’s next move. If ceasefire talks fail, further volatility may be observed in global markets.
Stock-Specific Movements
Several Sensex constituents recorded gains, including Trent, SBI, ICICI Bank, Asian Paints, UltraTech Cement, Adani Ports, L&T, Axis Bank, NTPC, HUL, Bajaj Finserv, M&M, Bharti Airtel, Tata Steel and Indigo. In contrast, stocks such as HDFC Bank, Infosys, Kotak Mahindra Bank, TCS, Titan and Eternal declined.
Asian markets showed a mixed but largely positive trend, with Tokyo, Hong Kong, Shanghai, Seoul and Jakarta trading in the green, while Bangkok witnessed weakness. US markets, including the S&P 500, had closed with gains on Friday, providing partial support to global investor sentiment.
Foreign institutional investors (FII) made net purchases of Rs 683.20 crore in Indian equities on Friday. In contrast, domestic institutional investors (DII) recorded net sales of Rs 4,721.48 crore, exerting some pressure on the market.
