The 30-share BSE Sensex fell by 19.38 points, settling at 78,479.79 shortly after trading began. Similarly, the 50-share NSE Nifty dropped 5.10 points to 24,567.45.

As the trading session progressed, the BSE benchmark further declined by 158.62 points, reaching 78,340.55, while the Nifty slipped 45.20 points to close at 24,524.95.

Notable laggards on the Sensex included stocks from Eternal, State Bank of India, InterGlobe Aviation, Power Grid, NTPC, and Bharti Airtel. In contrast, companies such as Titan, Infosys, Tech Mahindra, and HCL Tech emerged as winners in early trading.

The surge in Brent crude, the global oil benchmark, significantly impacted market sentiment, trading 1.03 per cent higher at USD 84.41 per barrel. Industry experts suggest that elevated crude prices present a key risk for investors.

Rajesh Palviya, Head of Research at Axis Direct, highlighted the implications of rising crude prices, emphasizing that Brent crude has increased for three consecutive sessions amid geopolitical tensions. “Iran has indicated there will be no immediate reopening of the Strait of Hormuz, coupled with weekend attacks on Gulf shipping. These factors are keeping the geopolitical risk premium elevated,” he stated.

Recent Foreign Institutional Investors (FIIs) activity shows a positive trend, having bought equities worth Rs 480.24 crore last Friday. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, remarked, “The undertone of the market remains mildly bullish. Better-than-expected Q1 results have supported this trend. With the earnings season nearing its conclusion, most companies have reported earnings growth that surpasses expectations.”

He further added that FIIs turning buyers in July and sustaining their purchases through August provide another encouraging factor for market participants.

Meanwhile, Asian markets displayed resilience, with South Korea’s KOSPI, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index all trading higher.

The US markets closed positively on Friday, adding to the encouraging global cues.