Markets erase early gains as oil supply concerns weigh on sentiment; rupee weakens

The domestic equity indices gave up early gains in Monday’s session as concerns over potential disruptions to global oil and gas supplies dampened investor sentiment. 

The Nifty 50 and the BSE Sensex slipped after opening higher, with volatility driven by rising geopolitical tensions and surging crude oil prices. At 11.15 am, the 30-share Sensex fell 183.79 points or 0.25% to 74,380.13 while the NSE Nifty50 was trading at 23,093.65, down 57.45 points or 0.25%. 

Among index constituents, UltraTech Cement , Grasim Industries , JSW Steel , and  InterGlobe Aviation were the top gainers on the Nifty50 during early trade. 

Broader markets, however, underperformed the benchmarks. The Nifty MidCap 100 and the Nifty SmallCap 100 were trading lower by 0.28% and 0.75%, respectively. 

On the sectoral front, the Nifty Realty Index declined the most shortly after the opening bell, emerging as the worst-performing sectoral gauge. In contrast, the Nifty FMCG Index outperformed other sectoral indices. 

Oil above $100 amid geopolitical tensions 

Global crude prices remained elevated as tensions in West Asia raised concerns over the safety of key oil infrastructure in Iran. 

Reports suggested that US President Donald Trump is considering options to strike oil infrastructure at Kharg Island, Iran’s major oil export hub, according to comments attributed to Mike Waltz, the US ambassador to the United Nations. 

The May futures contract for Brent Crude was trading 1.23% higher at $104.44 per barrel on the Intercontinental Exchange during the Asian trading session. 

Asian markets were mixed. South Korea’s Kospi, Japan’s Nikkei 225 and China’s SSE Composite Index traded lower, while Hong Kong’s Hang Seng Index quoted higher.  Wall Street had ended lower on Friday. 

According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth ₹10,716.64 crore on Friday. Meanwhile, Domestic Institutional Investors (DIIs) purchased stocks worth ₹9,977.42 crore. 

In the previous session, the Sensex had plunged 1,470.50 points, or 1.93%, to settle at 74,563.92 while the Nifty fell 488.05 points, or 2.06%, to close at 23,151.10. 

Rupee weakens in early trade 

The Indian rupee also remained under pressure in early Monday trade, weighed down by heavy foreign fund outflows and rising crude prices. 

The currency fell 13 paise to 92.43 against the US dollar in the interbank foreign exchange market. Forex traders said volatility in domestic equity markets and geopolitical uncertainties further weighed on the rupee, even as the dollar eased slightly from higher levels. 

The rupee opened at 92.44 and hovered near its lowest-ever intra-day level during the session. In the previous session, the currency had touched an intra-day low of 92.47 before closing at a record low of 92.30 against the dollar. 

Meanwhile, the US Dollar Index, which tracks the greenback against a basket of six currencies, was trading 0.13% lower at 99.98.