Indian equity markets indicated a weak opening on Monday, May 11, amid rising geopolitical tensions and a sharp increase in crude oil prices. Gift Nifty was trading 174 points, or 0.72%, lower at 24,066 ahead of the opening bell, signalling pressure on domestic equities.
Market sentiment remained cautious after the United States and Iran failed to reach an agreement on a peace proposal prepared by Washington. The escalation in tensions led to a rise of nearly $3 per barrel in crude oil prices on Monday.
Global energy supply concerns also intensified as activities across large parts of the Strait of Hormuz remained disrupted. The route is considered one of the world’s most significant oil trade passages.
Higher crude oil prices have increased concerns for India, one of the world’s largest oil-importing countries. Sustained elevated oil prices could affect inflation, the rupee and corporate costs. Shares of sectors including automobiles, aviation, paints, chemicals and FMCG may witness increased volatility under such conditions.
Despite geopolitical tensions, US equity markets closed higher on Friday. The S&P 500 and Nasdaq indices settled at record highs, supported by b buying in Nvidia, Sandisk and other artificial intelligence-linked companies. Asian markets also opened on a positive note on Monday.
Investors continued buying in global markets as the Middle East situation was, for now, viewed as a limited risk. However, global investors remain focused on the next steps from the United States and Iran.
Several companies are scheduled to announce their fourth-quarter earnings on Monday, including UPL, Canara Bank, Indian Hotels Company, Abbott India, JSW Energy, PVR Inox, Shyam Metalics, New India Assurance and Sirma SGS Technology. The results may trigger sector-specific market activity.
ABB India reported a sharp increase in quarterly earnings, with net profit rising nearly fourfold to Rs 1,784 crore. Revenue increased to Rs 3,184 crore, supported by industrial demand and improved operational performance.
Tata Consumer Products reported a 21.5% increase in profit to Rs 419 crore. The company also posted revenue growth of nearly 18%.
Swiggy reduced its loss to Rs 800 crore, while revenue increased about 45%, indicating continued demand in digital and quick-commerce businesses.
Bank of Baroda and Bank of India also reported b quarterly performance, with both lenders recording double-digit growth in profit and net interest income.
IRB Infrastructure Developers reported a 23.6% year-on-year increase in toll collection for April. NHPC announced plans to consider fundraising of up to Rs 2,000 crore through bonds.
CMS Info Systems secured a five-year ATM management contract worth Rs 400 crore from HDFC Bank. Separately, a unit of PB Fintech received SEBI approval to operate as a stock broker in the debt segment of the NSE.
