Indian Markets Open Cautiously as Nifty Slips Below 24,100 Amid Rising Crude Prices and US-Iran Tensions

Indian markets opened cautiously on Tuesday as elevated crude oil prices, rising US Treasury yields, and renewed US-Iran military tensions weighed on market sentiment. The Nifty 50 traded down 42.05 points, or 0.17 per cent, at 24,038.35 from its previous close of 24,080.40, which had fallen 95.25 points on Monday. The Sensex opened at 76,994.11 and traded down 80.74 points, or 0.10 per cent, at 76,876.53.

Brent crude crossed $91 per barrel in Asian trade following fresh US strikes on Iran and subsequent Iranian missile attacks on American bases in Jordan. Energy markets remained on edge amid competing claims over vessels striking mines near the Strait of Hormuz. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that crude continues to spiral higher, driven by a tight product market and fresh strikes on Russian refineries pushing refining margins to new highs, while the US Strategic Petroleum Reserve remains at its lowest level since 1983.

Among Nifty 50 gainers, ITC led with a 4.38 per cent rise to ₹266.70, followed by Bharti Airtel, up 2.75 per cent to ₹1,861.70. Adani Ports gained 2.73 per cent to ₹1,636.60, Adani Enterprises rose 2.12 per cent to ₹2,919.80, and TMPV added 2.19 per cent to close at ₹315.60. Conversely, Max Healthcare fell 3.48 per cent to ₹1,005.80, Nestle India declined 3.11 per cent to ₹1,449.90, IndiGo slipped 2.95 per cent to ₹5,079.50, TCS fell 2.72 per cent to ₹2,334.00, and Shriram Finance dropped 2.69 per cent to ₹1,080.00. Weakness in IT and FMCG reflected a broader global risk-off mood.

Bank Nifty showed relative resilience, closing Monday up 528.65 points, or 0.92 per cent, at 58,024.95 after recovering from the 57,200 support zone. Sachin Gupta, VP of Technical Research at Choice Equity Broking, observed that Bank Nifty continues to show relative momentum above its key EMAs, with the 58,700–58,800 band acting as key resistance.

Domestic economic data provided a key support cushion, as India's GDP expanded 7.8 per cent in the April–June quarter of FY27, beating the RBI's 7 per cent projection. Financial services grew 12.1 per cent, manufacturing expanded 9.2 per cent, and investment spending rose 11.9 per cent. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the Q1 GDP print is reassuring for achieving 7 per cent growth in FY27, though he cautioned that global headwinds from elevated crude and excessive US bond yields might impact the market negatively.

Institutional flows remained uneven. Foreign institutional investors sold nearly ₹7,985 crore worth of equities on Monday, while domestic institutional investors bought ₹4,588 crore. Meanwhile, the US 10-year Treasury yield climbed to 4.78 per cent, near a 20-month high, after Federal Reserve Chair Warsh's hawkish Jackson Hole speech. Vijayakumar warned that the flight of capital to safe US bonds is inevitable in this context, keeping Nifty's near-term range between 23,000 and 25,000.

In contrast to secondary market outflows, primary markets remained active. August 2026 saw around 22 companies raise over ₹23,000 crore in combined fundraising, marking the highest monthly total in a year. CA Kresha Gupta, Director and Fund Manager at Steptrade Capital, stated that August provided institutional investors a window to enter quality businesses at reasonable valuations, noting that FPIs remained active in primary issuances despite selling in secondary markets.

"The current market behavior highlights a clear divergence between macroeconomic fundamentals and global sentiment. While domestic indicators such as strong Q1 GDP growth and robust primary market fundraising indicate underlying economic resilience, external pressures like rising crude prices and US Treasury yields continue to drive foreign capital outflows. For businesses and investors in the Indian ecosystem, navigating this phase requires close attention to cash flow management, valuation discipline, and long-term fundamentals rather than short-term market volatility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes