Markets Mixed As Crude Nears $90; Sensex Falls 281 Points, Nifty Rises

Indian benchmark indices ended mixed on Monday as rising crude oil prices and continued uncertainty over the West Asia conflict weighed on investor sentiment, even as stronger corporate earnings and gains in select sectors provided support.

The BSE Sensex fell 281 points, or 0.36%, to settle at 77,728.16, while the NSE Nifty 50 ended at 24,287.65, up 78.35 points, or 0.32%. Sectoral indices closed mixed, with Nifty Realty and Nifty Metal emerging among the top gainers.

The broader market also remained relatively resilient. The Nifty Midcap 100 rose 0.05%, while the Nifty Smallcap 100 gained 0.36%.

Crude Oil, Geopolitical Risks Keep Investors Cautious

Brent crude crossed $89 a barrel, rising 0.9% during the session, as prospects of a near-term resolution to tensions between the US and Iran remained uncertain.

Iran had called on the US to accept defeat on Saturday, while US President Donald Trump warned Americans to prepare for continued high fuel prices as a result of the war. The elevated crude prices have kept input-cost pressures and inflation concerns in focus for Indian equities.

The India VIX, meanwhile, ended 0.18% higher at 11.32, signalling some increase in market uncertainty.

Vinod Nair, Head of Research at Geojit Investments, said energy-led input-cost pressures continue to influence near-term market sentiment. However, stronger-than-expected Q1FY27 earnings, supported by pricing actions and volume growth, could drive earnings upgrades in the coming quarters.

He added that investors are increasingly moving towards sectors and companies with stronger earnings visibility, particularly in the mid- and small-cap segments. Nair also flagged higher bond yields following elevated crude prices and the RBI's decision to advance the closure of the FCNR(B) deposit window.

Fed Cues In Focus For Markets

Commodity markets remained closely linked to developments around the US-Iran conflict. Kaynat Chainwala, AVP - Commodity Research at Kotak Securities, said Brent had extended gains to $89.5 a barrel, while WTI moved above $83 as prospects of an agreement to ease US-Iran tensions faded.

She said fresh fighting in Lebanon and continued attacks on vessels transiting the Strait of Hormuz had kept supply risks elevated. With the US-Iran settlement window expiring without a deal and potential sanctions on Iran still pending, crude prices could remain volatile.

Chainwala also said spot gold was trading near $4,400 an ounce and silver near $65.5, supported by reduced expectations of US rate hikes. Markets will watch the FOMC minutes, industrial production and flash PMI data for further clues on the Federal Reserve's policy path.

Meanwhile, Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the rupee declined around 14 paise to 95.59, pressured by subdued FII flows and higher crude prices. He expects the rupee to trade in the 95.25-95.85 range in the near term, with crude and the dollar remaining key triggers.