Market Opens Higher on Global Cues

Indian equity markets opened the week on a positive note on Monday, tracking positive global cues and a slight easing in crude oil prices. The Sensex opened at 77,629.56 against the previous close of 77,540.83 and was trading at around 77,774.29, up 233.46 points or 0.30 per cent at the time of reporting. The Nifty opened at 24,285.05 against its previous close of 24,252 and was hovering around 24,300 level.

Lokmat Times reported that the domestic markets opened higher after two consecutive weekly losses, with the decline in crude oil prices providing some support. The same report noted that investors were awaiting clarity on potential US sanctions on Iran later in the session, amid elevated geopolitical tensions.

Sectoral and Stock Movements

Most broad market indices traded in the green in early trade, though some sectors remained under pressure. According to ANI, auto, pharma, FMCG, PSU banks, healthcare, consumer durables, and cement were among the sectors under pressure. In contrast, Lokmat Times reported that metal stocks led sectoral gains, with the Nifty Metal index rising nearly 1 per cent, while Nifty Media gained 0.72 per cent, Nifty Oil & Gas rose 0.59 per cent and Nifty IT advanced 0.4 per cent. The same report indicated that Nifty Healthcare and Nifty Pharma declined 0.5 per cent each, while consumer durables, realty and FMCG were in negative territory.

On BSE, the top gainers included Infosys, HCL Tech, Tata Steel, HDFC Bank, Tech Mahindra, IndiGo, TCS, Kotak Bank, ICICI Bank, Hindustan Unilever, and NTPC, as per ANI. The major losers were Asian Paints, Titan, Bharti Airtel, Trent, and Power Grid. On NSE, the top gainers were Infosys, Hindalco, HCL Tech, Wipro, SBI Life, IndiGo, ONGC, and M&M, while Cipla, Trent, Titan, BEL, and Bajaj Finance were the top losers.

Oil Prices and Geopolitical Overhang

Crude oil prices showed signs of correction on Monday, with Brent crude trading at around USD 93.07 per barrel and crude oil at around USD 85.69 per barrel, according to ANI. Lokmat Times reported a steeper decline, noting that Brent was at roughly USD 92 a barrel, down more than 2 per cent, with US WTI slipping below USD 85 a barrel. The difference in the quoted prices reflects the timing of trade and the volatility in the oil market.

Earlier in the week, The Tribune reported a conflicting scenario: on the previous Tuesday, Brent had climbed to USD 91 per barrel while WTI topped USD 85, following President Trump's statements about the US-Iran memorandum. However, by Monday, oil prices were lower amid expectations of fresh US sanctions on Iran and a report that Tehran had played down the likelihood of tighter measures. Lokmat Times noted that investors awaited details on the new sanctions, contributing to a decline in crude prices.

Market and banking expert Ajay Bagga, cited by ANI, described global markets as entering the week of August 24 under heavy macro and geopolitical crosscurrents. He pointed to the sharp friction between escalating Middle Eastern conflict and high-stakes tech earnings, and highlighted Washington's declared "economic D-Day" against Iran—a blitz of secondary sanctions and naval enforcement intended to isolate Tehran and reopen the blocked Strait of Hormuz.

AnalystViews on Market Direction

Market analysts have expressed cautious views on the near-term direction of the market. According to ANI, Vipin Dixena (referred to as Vipin Dixit in some texts) noted that the market opened on a positive note but that early price action suggests buyers are not yet in strong control, indicating a cautious recovery rather than a confirmed reversal. He also noted two consecutive weeks of losses, with elevated crude prices and geopolitical uncertainty remaining overhangs, while improvement in domestic buying provides a cushion.

Lokmat Times carried market commentary from unnamed analysts, who said the Nifty could remain range-bound between 24,200 and 24,600 in the near term. They argued that while a resilient domestic economy and improving earnings growth provide fundamental support, elevated crude and share geopolitical risks could a cap the gains. Those analysts were quoted as saying: "With Brent around $93 and escalating geopolitical tensions associated with the West Asian crisis and the Russia-Ukraine war, any rally is likely to be met with increased selling at higher levels."

On the technical side, reports stated that a weekly hammer candle on the Nifty reinforced support levels and kept the reversal setup intact. Analysts suggested the index could move towards the 24,317-24,380 range and subsequently 24,400-24,545, provided the support at 24,060-24,000 holds.

Rupee and Institutional Activity

The Indian rupee weakened by 17 paise to close at 95.60 per dollar, hitting a two-week low, according to The Tribune report. The report attributed this to the Reserve Bank of India shortening the deadline for its discounted forex swap facility.

On currency forecasts, Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, was quoted by ANI as saying that the rupee remains on a weakening path as long as oil holds above USD 90. He expected the rupee to move into a range of 96.20 to 97.00 in the near term, while Novan that the RBI's reserves provide the means for an orderly adjustment.

On the institutional side, Lokmat Times reported that domestic institutional investors extended their buying streak to nine consecutive sessions on August 21, purchasing equities worth Rs 2,124 crore. In contrast, foreign institutional investors remained net sellers for a second straight session, offloading Rs 543 crore worth of shares.

Outlook

With global attention fixed on the upcoming Nvidia earnings and the Federal Reserve's annual symposium, markets remain vulnerable to anything. The monthly expiry of Indian index futures and options is due on Tuesday, which could increase volatility. Additionally, the Securities and Exchange Board of India (SEBI) has sanctioned two firms for manipulation of Sensex expiries, a development that could influence investor sentiment.

Analysts emphasize that elevated crude prices and geopolitical tension remain essential themes for the market. The ability to hold the 24,200 support level will be critical, they say, as a break below could reignite selling pressure.