Sensex, Nifty slide at open as Iran strikes rattle sentiment; IT stocks buck trend

Equity benchmarks opened sharply lower on Monday, July 13, dragged down by renewed geopolitical tensions after fresh United States military strikes on Iran over the weekend triggered risk aversion across global markets and pushed crude oil prices higher.

The Sensex, which had closed Friday at 77,569.39, opened at 76,963.35 and slipped further to 76,920.34, a fall of 649.05 points or 0.84 per cent, by 9.20 AM. The Nifty 50, which had settled at 24,206.90 in the previous session, opened at 24,039.40 and was trading at 24,022.40, down 184.50 points or 0.76 per cent.

Against the weak broader trend, information technology stocks emerged as the standout outperformers at the open. TCS rose 1.69 per cent to ₹2,104.00 from a previous close of ₹2,069.00, while HCL Technologies gained 1.22 per cent to ₹1,178.30 against its prior close of ₹1,164.10. Tech Mahindra added 0.41 per cent, trading at ₹1,460.70 compared to its previous close of ₹1,454.80.

"FIIs are reducing concentration risk in chip stocks and moving money to stabler markets where there is no concentration risk and long-term growth prospects are bright," said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. "If this trend sustains, the Indian market will continue to remain resilient."

Healthcare also held ground, with Apollo Hospitals rising 0.83 per cent to ₹8,914.00 from a previous close of ₹8,841.00. Energy major ONGC edged up 0.42 per cent to ₹246.00 against a previous close of ₹244.96, even as broader energy sentiment remained cautious amid crude oil volatility.

On the losing side, aviation bore the brunt of the sell-off. IndiGo fell 2.70 per cent to ₹5,168.50 from a previous close of ₹5,312.00, the steepest decline among Nifty50 constituents, as rising crude oil prices amplified concerns over airline fuel costs. Tata Steel dropped 2.10 per cent to ₹187.18 from ₹191.19, reflecting pressure on the metals sector amid global demand uncertainty.

In the automobile sector, Maruti Suzuki declined 1.70 per cent to ₹13,618.00 from its previous close of ₹13,854.00. Shriram Finance fell 1.59 per cent to ₹1,027.50 against ₹1,044.10, while Asian Paints lost 1.57 per cent, trading at ₹2,635.70 compared to its previous close of ₹2,677.80, as consumer discretionary names faced selling pressure.

Brent crude, which had been hovering around $76 per barrel, climbed into the $74–$75 range following the US-Iran escalation, with analysts warning that a sustained rise could widen India's import bill significantly.

"There is no panic in the oil market like in March," said Vijayakumar. "So long as Brent trades below $90, the market won't be impacted significantly. But if Brent shoots up to above $90, there can be a significant correction in the market."

Ponmudi R, CEO of Enrich Money, a SEBI-registered trading and wealth-tech firm, flagged that "sustained strength in energy prices could keep inflationary pressures elevated, widen India's import bill, and remain a key headwind for the country's macroeconomic outlook."

On the technical front, analysts were divided on near-term direction. Gaurav Udani, Founder of ThinCredBlu Securities, cautioned that "traders should avoid chasing the gap-up opening and instead wait for confirmation that gains are sustainable." He identified 23,900–24,000 as immediate support for Nifty, with 24,200–24,300 as the key resistance band.

Sachin Gupta, VP – Research at Choice Broking, noted the Nifty Put-Call Ratio had improved to 1.25 from 0.94, signalling "aggressive put writing and strengthening bullish sentiment among derivatives traders." India VIX fell 8.31 per cent to 12.25, indicating reduced volatility concerns. "The broader trend has improved significantly over the last two sessions, supported by strengthening momentum indicators, lower volatility and bullish derivatives positioning," he said, adding that 24,400 remains the key trigger for any sustained rally.

Shrikant Chouhan, Head of Equity Research at Kotak Securities...