Sensex, Nifty open higher as crude oil prices fall up to 2%

On Monday, Indian stock indices rose after two consecutive weekly declines, driven by lower crude oil prices, while market participants kept an eye on possible US sanctions against Iran amid heightened geopolitical concerns.

The Nifty began the session at 24,285.05, gaining 33.05 points (0.14%), and the Sensex opened at 77,629.56, up 88.73 points (0.11%).

Sectoral performance was led by metals, with the Nifty Metal index climbing close to 1%. Media added 0.72%, Oil & Gas rose 0.59%, and IT gained 0.4%. Auto, private banks and financial services also showed early gains.

On the flip side, Nifty Healthcare and Nifty Pharma each slipped about 0.5%, and consumer durables, realty and FMCG stocks traded lower.

Analysts expect the Nifty to trade within a 24,200‑24,600 band in the short term. A strong domestic economy and improving earnings could support an advance, but higher oil prices and geopolitical uncertainty may limit upside.

“With Brent hovering near $93 and rising geopolitical tensions from the West Asian crisis and the Russia‑Ukraine conflict, any upward move is likely to encounter selling pressure at higher levels,” they noted.

Nonetheless, the broader market continues to attract strong investor interest, especially in firms delivering solid results and providing optimistic forward guidance.

Sectors like CDMO, healthcare, precision engineering and power infrastructure are drawing buyer interest, yet market experts warn investors not to chase stocks at high valuations.

Technically, a weekly hammer candle on the Nifty has strengthened key support levels, preserving the reversal pattern. The index could target the 24,317‑24,380 zone, then possibly 24,400‑24,545, as long as the 24,060‑24,000 support area remains intact. Volatility may increase ahead of Tuesday’s F&O expiry.

In the August 21 session, domestic institutional investors continued their buying run for a ninth straight day, acquiring shares worth ₹2,124 crore, while foreign institutional investors remained net sellers for the second consecutive day, offloading ₹543 crore worth of equities.

Asian shares also slipped on Monday ahead of major events this week, such as Nvidia’s earnings release and the Federal Reserve’s annual symposium.

Crude oil prices fell as much as 2% while investors waited for information on new US sanctions against Iran. Tehran downplayed the likelihood of stricter economic measures. Brent traded near $92 a barrel, down over 2%, and WTI dropped below $85 a barrel.