Sensex, Nifty today: Will stock market fall on petrol, diesel price hike?
GIFT Nifty futures were trading at 23,915 around 8:42 am, indicating that the benchmark Nifty50 could open above Friday's closing level of 23,719.30.
Stock markets are likely to open higher on Monday despite fresh petrol and diesel price hikes, as easing crude oil prices and hopes of a possible peace deal between the US and Iran improved global market sentiment.
GIFT Nifty futures were trading at 23,915 around 8:42 am, indicating that the benchmark Nifty50 could open above Friday’s closing level of 23,719.30.
The positive cues come after crude oil prices slipped below the $100-per-barrel mark for the first time in more than two weeks.
Brent crude futures were down around 4% at $99.39 per barrel amid hopes that tensions in West Asia could ease soon.
Hitesh Tailor, Research Analyst at Choice Equity Broking, said Indian markets are expected to open strongly due to improving global sentiment and easing geopolitical concerns.
“Indian equity markets are expected to open on a sharply positive note, with Gift Nifty trading around 23,950, up by 259 points, indicating strong opening cues for domestic indices,” he said.
According to Tailor, improving global risk appetite and strength across Asian markets are supporting market sentiment.
Global markets reacted positively after US President Donald Trump said Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal.
The proposed agreement is expected to reopen the Strait of Hormuz, a key global shipping route that handled nearly one-fifth of the world’s oil and LNG shipments before the Iran conflict intensified.
Asian markets rose 1.2% in early trade following the decline in crude oil prices.
However, despite the optimism, the Trump administration later played down hopes of an immediate breakthrough in the three-month-old conflict.
PETROL, DIESEL PRICE HIKE STILL A CONCERN
Even as crude prices cooled globally, Indian consumers are facing another increase in fuel prices.
Petrol and diesel prices were hiked again over the weekend, marking the fourth increase in less than two weeks.
The repeated fuel price hikes have raised concerns around inflation, transport costs, logistics expenses, and household budgets.
Higher fuel prices usually increase costs for transportation, manufacturing and delivery services, which can eventually impact inflation and corporate profitability.
Still, analysts believe the sharp fall in crude oil prices may provide some relief if the trend continues.
MARKETS STILL UNDER PRESSURE FROM IRAN WAR
The Iran conflict has heavily impacted Indian markets over the past few months.
Since the war began in late February the Nifty50 has fallen around 5.8%, while the Sensex has declined nearly 7.2%.
Foreign investors have remained aggressive sellers during this period.
On Friday alone, foreign institutional investors (FIIs) sold Indian equities worth Rs 4,440.47 crore, according to provisional exchange data.
So far in 2026, foreign investors have pulled out nearly $23.9 billion from Indian equities, surpassing the record outflows seen in 2025.
NIFTY SIGNALS CAUTIOUS OPTIMISM
On Friday, the Nifty50 closed 64.60 points higher at 23,719.30.
The index touched an intraday high of 23,835.65 before witnessing some profit booking later in the session.
Technically, analysts said the formation of an inverted hammer-like candlestick pattern indicates cautious optimism, though selling pressure remains visible at higher levels.
The Relative Strength Index (RSI) improved to 47.19, while India VIX remained stable at 17.82.
Immediate support for Nifty is placed near the 23,550-23,600 zone, while resistance is seen around the 23,950-24,000 range.
BANK NIFTY SHOWS STRONGER MOMENTUM
The Bank Nifty index outperformed broader markets on Friday and rose 1.15% to close at 54,055.35.
The banking index rallied strongly during the session and touched an intraday high of 54,213.05.
Analysts said the formation of a bullish candlestick pattern suggests improving sentiment and stronger recovery momentum in banking stocks.
Immediate support is placed around the 53,900-54,000 zone, while resistance is seen near 55,400-55,500.
DII BUYING SUPPORTS MARKETS
While FIIs continued selling, domestic institutional investors (DIIs) remained strong buyers.
DIIs bought equities worth Rs 6,003.50 crore on Friday, helping support market sentiment despite foreign selling pressure.
Analysts believe continued support from domestic investors and improving global cues could help markets sustain recovery in the near term.
However, volatility linked to crude oil prices, geopolitical tensions and inflation concerns is likely to keep investors cautious.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)