Sensex, Nifty open lower as oil prices surge amid rising West Asia tensions

Indian equity markets opened the week on a weak note on Monday, tracking negative global cues amid renewed geopolitical tensions in West Asia and a sharp move in crude oil prices.

At the opening bell, both benchmark indices slipped into the red. The Nifty 50 fell below the 24,300 mark, trading at 24,290, down 64 points or 0.26%, while the BSE Sensex declined by around 248 points to 78,246, a drop of 0.32% at 9:16 AM. The decline was largely driven by risk-off sentiment following developments around the Strait of Hormuz and concerns over potential disruptions to global oil supply routes.

Market sentiment was also shaped by escalating uncertainty between the US and Iran, with diplomatic negotiations approaching a critical phase ahead of the April 22 ceasefire deadline. Investors remain cautious as tensions persist, including reports of renewed threats and maritime disruptions in the Gulf region

Crude oil prices surged more than 6% after earlier volatility, reversing a steep fall seen at the end of last week. The rebound was triggered by concerns over possible supply constraints following reports of renewed tensions affecting shipping through the Strait of Hormuz. Brent crude, which had briefly fallen below $90, climbed back towards the $95 level, though analysts noted there was still no sign of widespread panic in the oil markets.

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According to market commentary, volatility is expected to persist in the near term as geopolitical developments unfold. However, broader market signals suggest selective resilience, particularly in mid- and small-cap segments, which have recently outperformed large-cap indices. The Nifty Midcap and Smallcap indices have reportedly recovered to pre-conflict levels, while the Nifty 50 remains about 4% below its earlier peak.

Despite global uncertainty, investors continue to focus on corporate earnings, with stock-specific action expected to remain strong where results outperform expectations.

In global markets, sentiment was mixed. US equity futures declined, while Asian markets showed a more stable to positive tone. European futures also weakened. Meanwhile, the US dollar strengthened after recent losses, gold prices slipped on dollar strength, and oil remained the key driver of macro sentiment due to ongoing geopolitical risks.