Indian equity benchmarks opened Monday in positive territory, with the BSE Sensex jumping 100 points and the NSE Nifty starting the session above the 25,600 level, according to The Times of India. The gains follow a resilient weekly close that saw the Sensex add 404.53 points (0.51 per cent) and the Nifty advance 187.05 points (0.76 per cent).
Weekly wrap: Benchmarks end higher despite volatility
Benchmark indices managed to end the previous week on a positive note despite heightened volatility, The Times of India reported. The BSE Sensex gained 404.53 points, or 0.51 per cent, while the NSE Nifty advanced 187.05 points, or 0.76 per cent. The gains reflected a market that remained relatively resilient despite several competing factors, including geopolitical uncertainty, monetary policy developments and changes in the trading framework.
Rather than a broad-based surge, the performance indicated a measured improvement in sentiment, with investors continuing to respond to developments across domestic and global markets. The weekly movement also came against the backdrop of increased attention on institutional flows and corporate developments. The performance of the two benchmark indices provided a relatively positive starting point for investors assessing the market's broader trajectory.
FPI flows: Rs 12,921 crore in the first week of August
Foreign portfolio investors maintained a positive stance towards Indian equities, investing Rs 12,921 crore during the first week of August, according to The Times of India. The inflow adds to the importance of overseas institutional activity in determining the direction of Indian markets, particularly in large-cap stocks.
The Times of India reported that foreign flows can influence liquidity as well as sentiment, with sustained buying often providing support to benchmark indices.
At the same time, these flows remain sensitive to global interest-rate expectations, geopolitical developments, currency movements and valuations, the report noted. The continued investment therefore represents an important counterweight to periods of uncertainty in global markets.
Oil prices climb on Strait of Hormuz uncertainty
Oil prices climbed more than 1 per cent as uncertainty over the reopening of the Strait of Hormuz continued to weigh on markets. Brent crude rose 1.32 per cent to $84.65 a barrel, while US West Texas Intermediate (WTI) gained 1.04 per cent to $78.99 a barrel, The Times of India reported. The gains came after both benchmarks dropped more than 7 per cent in the previous week, as expectations grew that Iran and Oman could reach an agreement to facilitate the resumption of shipping through the strategic waterway. The Strait of Hormuz is a crucial global oil transit route, accounting for roughly a fifth of the world's oil flows before the war.
| Instrument | Latest level | Movement |
|---|---|---|
| Brent crude | $84.65/barrel | +1.32% |
| WTI | $78.99/barrel | +1.04% |
| Sensex (weekly) | +404.53 pts | +0.51% |
| Nifty (weekly) | +187.05 pts | +0.76% |
Developments around the Strait of Hormuz are particularly significant, given the waterway's importance to global oil supplies. Any disruption or prolonged uncertainty in the region could keep energy prices volatile and influence risk appetite across emerging markets, the report said. For India, sustained increases in crude prices could raise concerns over import costs and inflationary pressures, while a more stable energy market could provide some relief. The interaction between oil prices and geopolitical developments is consequently an important consideration when assessing the broader market environment.
Data calendar and Q1 FY27 earnings
Domestically, investors will closely monitor the July CPI inflation print, WPI inflation and the latest foreign exchange reserves data for fresh insights into inflation trends and external sector stability, according to The Times of India. The Q1 FY27 earnings season will gather further momentum, with several companies, including HAL, Bharat Forge, Grasim Industries, and Tata Motors, scheduled to announce their quarterly results.
Crude oil prices are an important variable for equities because movements in energy costs can have a wider impact on inflation, corporate margins and the country's external finances, the report added. Investors are likely to assess whether foreign participation can remain resilient as international macroeconomic data and developments in commodity markets continue to shape the risk environment for emerging-market assets.
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