Sensex, Nifty trade muted in early deals as Iran war jitters offset banking optimism

Indian equity benchmarks opened on a cautious note on Monday, tracking global uncertainty linked to escalating tensions between the US and Iran, even as banking stocks offered limited support following steady quarterly updates.

At 9:16 am, the BSE Sensex was down 124.48 points, or 0.17 per cent, at 73,195.07, after touching an intraday high of 73,588.75. The Nifty 50 slipped 16.35 points, or 0.07 per cent, to 22,696.75.

The subdued start comes after markets remained shut on Friday for Good Friday, with investors returning to a mix of global risk and domestic cues.

Global tensions cap upside

Investor sentiment remained fragile after Donald Trump warned of severe consequences if Iran fails to reopen the strategically crucial Strait of Hormuz, a chokepoint for nearly a fifth of global oil and gas supplies.

The geopolitical escalation has pushed Brent crude prices above $110 per barrel, raising concerns over inflation and widening current account pressures for oil-importing nations like India.

Asian markets traded mixed, reflecting the uncertainty, while foreign investors continued to pull money out of Indian equities amid rising oil prices and global risk aversion.

Banking stocks in focus

Financial stocks were closely watched after lenders reported quarterly business updates over the weekend.

HDFC Bank, Kotak Mahindra Bank, Axis Bank and Bajaj Finance posted steady loan growth, indicating resilient credit demand.

HDFC Bank reported a 10 per cent rise in average advances and a 12.8 per cent increase in deposits for the March quarter, while Bajaj Finance saw a sharp 20.5 per cent jump in new loans.

Shares of Axis Bank and HDFC Bank traded marginally higher in early deals, helping limit broader market losses.

Winners and losers

Among Sensex constituents, gains were led by Trent, which surged over 3 per cent, followed by Power Grid Corporation of India, Titan Company and Bharat Electronics.

IT majors such as Infosys and Tata Consultancy Services also saw mild gains.

On the downside, losses were led by Kotak Mahindra Bank, Sun Pharmaceutical Industries, Adani Ports and Special Economic Zone and InterGlobe Aviation.

Heavyweights including Reliance Industries and State Bank of India also traded in the red, weighing on the indices.

Broader market mood

Market breadth remained slightly negative, with 28 Nifty stocks declining against 21 advancing.

The Nifty has fallen more than 13 per cent so far in 2026, reflecting sustained pressure from global headwinds, including the ongoing conflict in West Asia and rising energy costs.

Meanwhile, the Indian rupee is expected to open firmer, supported by recent measures from the Reserve Bank of India, although elevated crude prices and persistent foreign outflows could cap gains.