Indian equity markets opened on a cautious note on Monday, with benchmark indices indicating modest gains in the pre-open session, even as geopolitical tensions in West Asia keep investors on edge.
The BSE Sensex started trading near 78,400, slipping almost 100 points, while the NSE Nifty50 inched lower by 16 points to trade around 24,340, around 9:15 AM.
Early signals suggested a steady start for domestic markets, with GIFT Nifty trading at 24,466, up 97.50 points or 0.40 per cent. At around 9:01 AM, the Sensex was up 172.56 points, or 0.22 per cent, at 78,666.10, while the Nifty50 advanced 205.30 points, or 0.84 per cent, to 24,558.85.
However, gains may remain capped as traders refrain from taking aggressive positions ahead of fresh developments in US-Iran negotiations expected later in the day.
West Asia Tensions Back In Focus
Geopolitical concerns have resurfaced after fresh developments in the Gulf region heightened uncertainty.
Tensions escalated following reports of a US action involving an Iranian-flagged cargo vessel, while Iran is said to have responded by targeting commercial movement through the Strait of Hormuz, a critical global oil transit route.
The situation has been further complicated by the fragile ceasefire, which is nearing its expiry. Both sides appear to be adopting a more rigid stance, with Iran signalling hesitation towards fresh talks.
Disruptions in the Strait of Hormuz, which handles a significant share of global oil shipments, remain a key risk for markets.
Key Triggers This Week: Earnings, Oil, Global Cues
Market participants are expected to closely track three major drivers this week: developments in the US-Iran conflict, movements in crude oil prices, and the ongoing corporate earnings season.
Analysts said geopolitical developments will remain a crucial monitorable, given their direct impact on oil prices and overall market sentiment.
Earnings Season Gains Momentum
Domestically, focus is shifting to Q4 FY26 earnings, with several heavyweight companies set to announce results in the coming days.
Banking majors have already reported their numbers, with HDFC Bank posting an 8.04 per cent rise in March quarter consolidated net profit to Rs 20,350.76 crore, while ICICI Bank reported a 9.28 per cent increase to Rs 14,755 crore, supported by a sharp drop in provisioning.
Investors will now track results from companies such as HCL Technologies, Infosys, Tech Mahindra, Havells, IndusInd Bank and Shriram Finance for further cues.
Last Week’s Rally Provides Support
Domestic markets ended last week on a positive note, with the Sensex gaining 943.29 points, or 1.21 per cent, and the Nifty rising 302.95 points, or 1.25 per cent.
Analysts noted that sustained stability in crude oil prices and clarity on geopolitical developments could provide further support to equities.
Oil, Strait Of Hormuz Remain Key Risks
Oil market developments continue to remain a central concern. After recent disruptions, there were brief signs of easing as Iran reopened the Strait of Hormuz for commercial traffic.
However, fresh tensions have once again clouded the outlook, with Tehran reportedly shutting the route again, citing violations by the US.
Given that the waterway carries nearly one-fifth of global oil supplies, any prolonged disruption could have significant implications for inflation, currency stability and market sentiment.
