The equity markets opened higher on Monday, August 24, where the benchmark Sensex gained more than 200 points in early trade, while the Nifty 50 moved above the 24,300 mark. However, gains remained measured as investors continued to watch developments around possible US sanctions on Iran and their impact on global oil supplies. In fact, a decline in crude oil prices offered some relief to investors worried about the economic fallout from rising tensions between the US and Iran.
The early recovery came after Indian equities suffered losses for two straight weeks. Last week, the Sensex declined 468.42 points, or 0.60%, while the Nifty dropped 114 points, or 0.46%. Elevated crude oil prices, higher global bond yields and continuing geopolitical uncertainty had weighed on investor sentiment.
IT and banking stocks provided much of the support in Monday’s opening trade. Infosys and HDFC Bank emerged among the leading gainers, while HCL Technologies, Tata Steel, Tech Mahindra and Tata Consultancy Services also advanced. Apollo Tyres gained more than 6% after UBS upgraded the stock to Buy from Neutral.
On the other side, Asian Paints, Titan, Power Grid and Bharat Electronics were among the notable laggards. The broader sectoral picture was mixed, with technology, financial services, metals, realty and media stocks showing strength, while consumer durables, public sector banks, automobiles, pharmaceuticals, healthcare and FMCG stocks remained under pressure.
One of the day’s prominent individual movers was Vishal Mega Mart. Its shares jumped around 9-10% after the company announced the reappointment of Gunender Kapur as managing director and chief executive officer for another five-year term. The leadership continuity was viewed positively by investors, with Morgan Stanley also seeing significant upside potential in the stock.
Oil prices provided some breathing room to Indian markets on Monday. Brent crude fell more than 1% to around $93 a barrel, while US West Texas Intermediate crude slipped to about $85.6 a barrel. Investors booked profits after both benchmarks gained more than 5% last week.
The decline in crude prices was particularly important for India because the country depends heavily on imported oil. A sustained rise in crude can increase India’s import bill, put pressure on the rupee, raise inflation risks and potentially affect corporate earnings.
The market, however, remains nervous about the Strait of Hormuz. The strategic waterway has historically carried roughly a fifth of global oil supplies, and any further disruption could push energy prices higher. The latest uncertainty follows stalled US-Iran talks and threats of tougher US sanctions against Iran.
Foreign portfolio investors have shown renewed interest in Indian equities during August, but they remain net sellers for the year. According to market data cited in Monday’s live updates, FPIs have withdrawn around ₹2.3 lakh crore from Indian equities in 2026, although they invested about ₹23,544 crore during August.
The rupee also began the week on a firmer note, gaining seven paise to trade at ₹95.64 against the US dollar. Currency movements will remain important because a weaker rupee can make India’s oil imports more expensive.
Market experts expect the Indian stock market to remain range-bound in the near term. Geojit Investments said the Nifty could move within 24,200-24,600, with crude prices and geopolitical tensions likely to limit the upside. Market analysts are also watching the 24,060-24,000 zone as an important support area.
Global cues remain mixed. Asian markets largely traded lower, with South Korea’s Kospi falling sharply and Hong Kong’s Hang Seng also declining. Investors are also awaiting US inflation data and signals on interest rates from the Federal Reserve.
The immediate focus for Dalal Street, is primarily on crude oil, the US-Iran situation, foreign fund flows, the rupee and global interest-rate expectations. Today’s early gains show that investors are willing to buy on declines, but the market is unlikely to find a clear direction until geopolitical risks and oil prices become more predictable.
Investors are likely to remain cautious through the week as global and domestic factors continue to shape market sentiment. Earnings updates, institutional fund flows and movements in the rupee could also influence trading patterns. While easing crude prices may offer some support, any escalation in US-Iran tensions could quickly revive concerns over inflation and energy costs. For now, traders are expected to remain selective, favouring stocks with stronger fundamentals.