Indian markets open higher as oil prices fall on energy ceasefire hopes

Indian benchmark indices opened moderately higher on Monday, with GIFT Nifty trading at 22,624–22,641, up 0.1–0.17 percent, signalling cautious gains following Friday's sharp rally. The Sensex and Nifty had closed Friday with gains exceeding 1 percent, ending their longest weekly losing streak in 25 years.

Oil prices declined on Monday after US President Donald Trump announced that Ukraine and Russia had agreed to halt attacks on each other's energy infrastructure, following a US diesel-supply agreement with Moscow. Brent crude futures fell 1.47 percent to $103.18 a barrel, while West Texas Intermediate crude dropped 1.68 percent to $90.31 a barrel. The Reserve Bank of India's recent currency-support measures also supported market sentiment.

Global equities showed mixed performance. Asian markets were subdued, with South Korea's Kospi falling 1.1–2.2 percent and Taiwan's shares slipping 0.5 percent, though Australia's S&P/ASX 200 rose 0.4 percent. US equity futures advanced, with S&P 500 futures gaining 0.2–0.3 percent and Nasdaq futures rising 0.4–0.5 percent. European futures also pointed higher, with EURO STOXX 50 futures up 0.4–0.5 percent.

Investor sentiment remained cautious amid several headwinds. Foreign institutional investors extended their selling streak to an 11th consecutive session, offloading equities worth approximately Rs 3,568–3,569 crore on Friday, while domestic institutions purchased shares worth around Rs 4,743 crore. India VIX, a gauge of market fear, fell 5.9 percent to 14.38. Analysts noted that persistent foreign selling, geopolitical uncertainty in the Middle East, and developments in the proposed Ukraine-Russia energy ceasefire remained key pressure points. The Indian rupee appreciated 17 paise to close at 96.71 against the US dollar on Friday, supported by softer US dollar and oil prices.

Market participants braced for the US earnings season and inflation data scheduled for the coming week, expected to offer fresh cues on corporate performance and the Federal Reserve's monetary policy direction. According to market analysts, sustained moderation in crude oil prices could ease inflation and currency concerns, though any setback in energy negotiations or renewed escalation could reverse gains.