Indian Equities Open Lower Amid US-Iran Tensions, Sensex Recovers Over 450 Points From Day's Low
Markets showed resilience after an initial dip, with investors closely watching geopolitical developments and the upcoming Q1 earnings season.
The story
Indian equity benchmarks experienced a volatile start to the week, opening with a gap-down on Monday, July 13, as escalating tensions between the US and Iran pushed crude oil prices higher and dampened global sentiment. The Sensex initially dropped over 700 points to an intraday low of 76,857, while the Nifty 50 shed more than 200 points, slipping below the 24,000 mark in early trade. However, both indices pared a significant portion of their losses, with the Sensex recovering over 450 points from its day's low and the Nifty 50 trimming its decline to hold above 24,150 in morning trade.
The IT sector bucked the broader market trend, trading higher ahead of HCL Technologies' Q1 results. Tata Consultancy Services (TCS) shares rallied, extending gains after reporting a 4.61% year-on-year rise in June-quarter net profit on Friday, July 10, and signalling improving demand. Conversely, most other sectoral indices, including financials, metal, auto, and FMCG, were trading in the red. The Indian rupee also weakened, hitting a one-month low against the dollar, trading near 95.7875 by mid-morning.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 24,190 | -16 pts |
| Sensex | 77,407.53 | -161.86 pts (-0.21%) |
| Bank Nifty | 57,561.00 | -485 pts (-0.84%) |
| USD/INR | 95.76 | +0.38 (+0.40%) |
| India 10Y yield | 6.739% | +0.023 (+0.34%) |
| India VIX | NA | +10% |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Flows | +₹2,603.72 crore (July 10, 2026) | Foreign Institutional Investors remained net buyers in Indian equities. |
| DII Net Flows | +₹2,019.68 crore (July 10, 2026) | Domestic Institutional Investors also showed net buying activity. |
| May IIP Growth | 5.1% YoY | Industrial Production Index saw growth, driven by manufacturing and electricity sectors. |
| Fino Payments Bank Deposits | ₹2,755 crore (June 2026) | Average total deposits increased by 11% year-on-year. |
IPOs & the primary market
The primary market is set to witness new activity with three issues opening for subscription this week. Alpine Texworld and SBI Funds Management are scheduled to open their mainboard IPOs from July 14 to July 16.
Additionally, Millworks Technologies will launch its SME IPO during the same period. The SBI Funds Management IPO is already seeing signals of a potential 15%+ listing pop in the grey market. Meanwhile, the IPOs for Laser Power & Infra and Devson Catalyst, which opened on July 9, are closing today, July 13, with their tentative listing dates set for July 16.
Valuation watch — India & global
India's market valuations continue to be a point of discussion, especially as global cues introduce fresh uncertainties. The escalation of US-Iran tensions over the weekend has led to a surge in crude oil prices, reviving concerns that elevated energy costs could fuel inflation and prompt central banks to maintain tighter monetary policies.
This global dynamic can influence India's market valuation by impacting discount rates and corporate earnings outlook. Broader emerging markets also saw significant outflows in June, with foreign investors pulling a net $46.1 billion, particularly from technology-focused markets like South Korea and Taiwan, indicating growing caution towards risk assets globally.
Monsoon watch
The India Meteorological Department (IMD) has forecast heavy to very heavy rainfall over parts of Bihar, Assam, Meghalaya, and Sub-Himalayan West Bengal and Sikkim for July 12. Heavy rainfall is also expected across Arunachal Pradesh, East Uttar Pradesh, Chhattisgarh, Jharkhand, Odisha, Punjab, Himachal Pradesh, Jammu and Kashmir, Uttarakhand, and parts of Delhi-NCR. While the cumulative monsoon rainfall deficit had narrowed to 15% below normal as of July 9, kharif sowing remains significantly behind last year's pace, showing a 20.8% year-on-year reduction.
What we'll be watching
- India's June WPI and CPI inflation data will be released on July 14.
- The Nifty weekly options expiry is scheduled for Tuesday, July 14.
- HCL Technologies is set to report its Q1 FY27 earnings on Monday, July 13.
- Wipro's Q1 FY27 earnings are expected on July 16.
- The IPOs for Alpine Texworld, SBI Funds Management, and Millworks Technologies open for subscription from July 14 to July 16.
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