By Our Business Correspondent

Indian equity markets began the week on a cautious note on Monday, with benchmark indices closing lower as elevated crude oil prices and persistent geopolitical uncertainty weighed on investor sentiment. The Nifty slipped below the psychologically important 24,300 mark, while the Sensex declined more than 280 points.

The S&P BSE Sensex fell 281.09 points, or 0.36%, to settle at 77,728.16. The Nifty 50 declined 78.35 points, or 0.32%, to close at 24,287.65.

Rising crude prices remained a key concern for investors, with Brent crude trading close to $90 a barrel amid continued uncertainty over the Iran conflict and the lack of visible progress towards a resolution. Higher energy prices are particularly significant for India, which remains heavily dependent on imported crude oil. A sustained rise in oil prices could increase import costs, put pressure on the rupee and complicate the inflation and interest-rate outlook.

IT, FMCG Stocks Under Pressure

Selling pressure was visible across several key sectors, particularly information technology, fast-moving consumer goods and consumer durables. Infosys was among the biggest drags on the Nifty, falling 2.51%. Sun Pharmaceutical Industries declined 2.49%, while Bharti Airtel slipped 1.14%.

The weakness in heavyweight stocks contributed significantly to the decline in the frontline indices.

In contrast, metal stocks gained as investors took support from firmer commodity prices and positive cues from global markets. The broader market, meanwhile, showed relative resilience compared with the benchmark indices.

The BSE 150 MidCap index rose 0.18%, while the BSE 250 SmallCap index gained 0.06%.

However, overall market breadth remained negative. On the BSE, 2,087 shares advanced, while 2,353 declined and 240 remained unchanged, indicating broader selling pressure despite gains in select mid- and small-cap counters.

Crude, Rupee and Bond Yields

In the commodities market, Brent crude for October 2026 delivery advanced 93 cents, or 1.05%, to $89.45 a barrel. Oil prices remained elevated as geopolitical risks and disruptions to tanker traffic through the Strait of Hormuz continued to raise concerns over global energy supplies.

The rupee also weakened against the US dollar. The partially convertible rupee was quoted at 95.6500 to the dollar, compared with its previous close of 95.4200.

The weakness in the domestic currency could add to the pressure on India’s import bill if crude prices remain elevated for an extended period.

The yield on India’s 10-year benchmark government bond increased to 6.814%, compared with the previous close of 6.762%, reflecting changing expectations around inflation, liquidity and monetary policy.

Gold prices also moved higher. MCX Gold futures for the October 5, 2026 settlement gained 0.46% to Rs 1,55,190.

In international currency and fixed-income markets, the US Dollar Index declined 0.24% to 99.43, while the US 10-year Treasury yield eased 0.09% to 4.692%.

Global Markets Remain Mixed

Asian and European markets largely traded higher on Monday as softer US economic data reduced expectations of an imminent Federal Reserve rate hike. Gains in basic resources and Chinese equities also supported market sentiment.

Investors, however, continued to monitor developments in the Middle East closely. Brent crude remained near $89 a barrel as uncertainty surrounding the conflict and shipping disruptions through the Strait of Hormuz kept supply risks elevated.

The prolonged increase in energy prices has also revived concerns that inflationary pressures could strengthen again, potentially complicating the policy decisions of central banks.

Japan’s economy grew at an annualised rate of 1.1% during the April-June quarter, slowing from 2.1% growth in the previous quarter and falling short of market expectations. On a quarter-on-quarter basis, Japan’s GDP expanded 0.3%, while relatively weak household and business spending highlighted the fragile nature of the country’s economic recovery.

US equities ended lower on Friday after weaker-than-expected retail sales raised concerns about consumer spending. The S&P 500 declined 0.17% to 7,785.76, the Nasdaq Composite fell 0.28% to 26,729.16 and the Dow Jones Industrial Average shed 0.20% to 53,732.41. Despite the day’s decline, the S&P 500 recorded its third consecutive weekly gain.

US consumer prices rose 0.1% in July, while producer prices remained unchanged. Together with the unexpected decline in retail sales, the softer data has reduced expectations of a near-term Federal Reserve rate hike.

Markets are currently pricing in around a 30% probability of a September rate hike, down from nearly 50% a week earlier. Investors will therefore closely track the minutes of the Federal Reserve’s July meeting, scheduled for release on August 19, for further indications about the central bank’s policy direction.

New Listings Deliver Strong Debuts

The primary market continued to attract investor attention, with two new listings delivering substantial gains on their debut sessions.

Molbio Diagnostics ended its first trading session on the BSE at Rs 1,036.30, representing a 28.41% premium over its issue price of Rs 807. The stock opened at Rs 980, a 21.44% premium, and moved between Rs 925.80 and Rs 1,064.85 during the session. More than 16.62 lakh shares changed hands.

Dhoot Transmission also made a strong debut, closing at Rs 1,187.50, up 36.34% from its issue price of Rs 871. The stock opened at Rs 1,193.80, a premium of 37.06%, and traded in the range of Rs 1,193.80 to Rs 1,212.70. More than 30.82 lakh shares were traded on the BSE.

Stocks in Focus

Larsen & Toubro gained 0.73% after the company announced that its subsidiary L&T Energy Hydrocarbon Offshore had secured an ‘ultra-mega’ order from a major Middle Eastern client for the development of multiple offshore facilities. Under L&T’s internal classification, the contract is valued at more than Rs 15,000 crore.

BSE Ltd fell 3.34% to Rs 3,332 after a foreign brokerage downgraded the stock to ‘underperform’. The brokerage cited concerns over lower trading volumes and the impact of the Closing Auction Session (CAS). It also reduced its target price by 16% to Rs 2,940 from Rs 3,520 and lowered its FY27-FY29 earnings estimates by 5-12%.

UFlex emerged as one of the strongest performers, surging 20% after reporting a sharp improvement in first-quarter performance. Consolidated net profit jumped 629.6% year-on-year to Rs 423.3 crore in Q1 FY27, while revenue increased 37.6% to Rs 5,366 crore.

PTC Industries advanced 7.09% after its consolidated net profit rose 466.2% year-on-year to Rs 29.2 crore. Total income increased 83% to Rs 197.1 crore.

Rubicon Research gained 11.42% following a strong quarterly performance. Net profit increased 95.8% year-on-year to Rs 84.78 crore, while net sales rose 51.6% to Rs 534.34 crore.

Turtlemint Fintech Solutions climbed 10.08% as its consolidated loss narrowed to Rs 37.78 crore from Rs 46.69 crore a year earlier. Revenue increased nearly 40% to Rs 294.08 crore.

On the downside, Cochin Shipyard declined 2.59% after quarterly net profit fell 19.38% to Rs 151.45 crore despite a modest rise in revenue.

Zaggle Prepaid Ocean Services hit its 20% lower circuit after net profit declined 32.86% year-on-year to Rs 17.53 crore.

Voltas slipped 4.05% despite reporting a 51% rise in consolidated net profit to Rs 213 crore, while PhysicsWallah gained 0.74% after narrowing its quarterly loss to Rs 88 crore. Anupam Rasayan India declined 1.15% despite reporting a 6% increase in net profit.

IPO Subscription Update

The IPO market also remained active, with two issues opening for subscription on Monday.

Horizon Industrial Parks received bids for 3.52 crore shares against 25.13 crore shares on offer by 4:48 pm, resulting in a subscription level of 0.14 times. The issue will remain open until August 19, with the price band fixed at Rs 57-60 per share.

Lalithaa Jewellery Mart received bids for 4.32 crore shares against 6.27 crore shares on offer, translating into a subscription of 0.69 times. The issue, which also closes on August 19, carries a price band of Rs 190-201 per share.

With crude prices, the rupee, global interest-rate expectations and geopolitical developments remaining key variables, investors are likely to maintain a cautious stance in the near term. The upcoming US Federal Reserve minutes and further developments in the Middle East could provide fresh direction to both domestic equities and global markets.