Stock market today: BSE Sensex tumbles over 670 points, NSE Nifty50 trades below 24,200

Indian equity markets are expected to witness a cautious start on Monday, with GIFT Nifty trading around 24,295, down nearly 55 points, indicating a weak opening for domestic equities. Global cues remain negative after a sharp sell-off on Wall Street, while a strong surge in crude oil prices amid escalating geopolitical tensions in the Middle East is likely to keep investors on edge during the opening session. Despite the weak global backdrop, the domestic market continues to exhibit a resilient technical structure, suggesting that any decline may attract buying at lower levels. On Friday, the Nifty 50 closed at 24,334.30, gaining 261 points (1.09%), and formed a strong bullish candle on the daily chart, reflecting renewed buying interest after a brief phase of consolidation. The index witnessed broad-based participation across sectors and managed to reclaim important resistance levels, reinforcing the positive short-term trend. Going ahead, the immediate trading range for Nifty is expected between 24,100 and 24,500, while Bank Nifty is likely to trade within the 58,000–59,000 zone, with the overall bias remaining Sideways to Bullish.

Apart from corporate earnings and global events, the progress of the southwest monsoon and kharif sowing is expected to remain an important domestic trigger for markets. A healthy monsoon is widely seen as beneficial for agricultural output, rural incomes and overall consumption demand. It also plays a significant role in determining food inflation, which in turn influences the Reserve Bank of India's policy decisions.

Analysts believe favourable rainfall could strengthen confidence in the rural economy, while any weather-related disruptions may raise concerns about inflationary pressures. As a result, market participants are likely to keep a close watch on monsoon-related developments alongside corporate and global cues.

Crude oil prices are expected to remain among the most closely watched indicators for investors. Rising geopolitical tensions have the potential to keep oil prices elevated, which could influence inflation expectations and corporate profitability, particularly for sectors dependent on fuel and energy costs. India, being a major importer of crude oil, is especially sensitive to sustained increases in global oil prices.

Analysts believe movements in crude will also affect market sentiment, as higher energy costs can influence government finances, consumer spending and monetary policy expectations. Investors are therefore expected to closely track both crude price movements and geopolitical developments for clues on the broader market outlook.

Global developments are expected to remain a major influence on market sentiment, with investors closely monitoring the evolving geopolitical situation in the Middle East. The ongoing tensions involving the United States and Iran have kept financial markets on edge, particularly due to concerns over energy supplies and global trade routes.

Analysts believe any signs of easing tensions could improve investor confidence and boost risk appetite. On the other hand, further escalation or disruptions to shipping through the Strait of Hormuz may increase uncertainty across global markets. Such developments often impact commodity prices, inflation expectations and investor appetite for risk assets, making geopolitical news an important factor for equity markets.

Financial stocks are likely to stay under the spotlight after several banking majors reported their quarterly earnings. Reliance Industries posted record quarterly core profit and EBITDA, supported by strong performances in its oil-to-chemicals and telecom businesses. Among lenders, HDFC Bank reported a 5 per cent rise in standalone profit, while ICICI Bank registered nearly 14 per cent growth in consolidated profit, backed by healthy credit expansion.

Kotak Mahindra Bank also delivered a strong quarter with over 22 per cent growth in consolidated profit, while Axis Bank reported a...