BT Opening Bell | Sensex, Nifty off to muted start; JFS, HDFC Bank shares fall up to 2%, YES Bank gains

Benchmark stock indices Sensex and Nifty were off to a muted start on Monday, as Brent crude oil prices jumped over 7 per cent amid uncertainty over the peace talks between the US and Iran. 

At 9.16 am, the BSE Sensex was trading at 78,371.81, down 121.73 or 0.16 per cent. Nifty was quoting at 24,288.55, down 37.15 points or 0.15 per cent. A second round of US–Iran negotiations is scheduled to begin today, but Tehran has rejected participation, leaving the ceasefire deadline set for Tuesday with no clear path to extension, said Devarsh Vakil, Head of Prime Research, HDFC Securities. 

Crude oil prices vaulted nearly 7 per cent, a swift reminder that with roughly a fifth of global seaborne crude transiting the strait, any disruption to passage carries outsized price consequences, Vakil said. He noted that the narrative around the conflict remains fluid, and while the probability of the most adverse outcomes appears to have diminished, considerable uncertainty remains around the duration and resolution of energy supply disruptions.

At 9.18 am, Brent futures for June delivery were trading at $95.22, up 5.36 per cent.

With Iran hardening its position again, closing the Strait of Hormuz and threatening to retaliate to US’ seizure of an Iranian ship ‘violating the US blockade’, there is potential for flare up of the conflict when the ceasefire ends on April 22. 

"However, the market signals do not reflect renewed concern and flare up of the conflict. Even though Brent crude has spiked back to $ 95 levels from below $90 on Friday, there is no panic in the crude market," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.  

"Over the weekend, conflicting developments emerged, particularly with reports indicating that the Strait of Hormuz has been closed again after briefly reopening on Friday. This reversal has already triggered a rebound in crude oil prices, reintroducing concerns around supply disruptions and inflation," said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth. 

Markets are likely to witness a volatile and potentially uneven session today, with sentiment swinging between relief and renewed caution, Hariprasad said adding that the risk of a negative reaction remains elevated, especially if crude prices sustain upward move.

HDFC Bank Ltd fell 1.13 per cent to Rs 790.85. A couple of brokerages have retained 'Buy' on HDFC Bank Ltd after the largest private sector bank's  March quarter results. The lender reported a miss on net interest income (NII) and pre-provision operating profit (PPoP) due to lower interest income, however, beat on opex and provisions led to higher profit. 

ICICI Bank Ltd added 1 per cent to Rs 1,361. The private lender reported inline net interest income (NII) and pre-provision operating profit in the March quarter, while profit after tax (PAT) beat analyst expectations, mainly due to lower provisions driven by higher recoveries and write-backs in the corporate book, along with lower provisioning requirements in retail unsecured credit.

YES Bank Ltd advanced 1.19 per cent to Rs 20.44. This bank has received a 17 per cent downside target of Rs 17 by JM Financial, even as the private lender reported a strong 45 per cent year-on-year (YoY) jump in net profit for the March quarter. Calling Q4 as a good quarter, the brokerage said moderating recoveries are a major headwind for YES Bank in FY27.

Jio Financial Services Ltd fell 2.03 per cent to Rs 239. MOFSL retained its 'Buy' rating on Jio Financial Services Ltd despite a mixed set of March quarter results, saying credit-led scale-up continued and newer businesses ramped up. 

 OMC stocks such as BPCL, HPCL and IOC were mixed.