Indian equity markets are expected to begin Monday’s session on a cautious note as rising crude prices and renewed geopolitical concerns weigh on sentiment. The Sensex had ended the previous week at 78,499.17, while the Nifty closed at 24,570.65, registering weekly gains of 0.52% and 0.77%, respectively.

Foreign portfolio investors have made a strong return to Indian equities, investing around Rs. 12,921 cr. during the first week of August. The inflow follows an investment of approximately Rs. 20,200 cr. in July and marks a notable turnaround after four consecutive months of heavy selling.

Precious metals remain in focus on Monday as investors continue to balance geopolitical risks against changing expectations for global interest rates. According to early domestic market data, gold was around Rs. 1,52,160 per 10 grams, while silver was around Rs. 2,32,660 per kg.

Oil prices moved higher as uncertainty surrounding the reopening of the Strait of Hormuz increased. Iran has linked the restoration of normal shipping through the critical waterway to concessions from the United States, creating fresh concerns over the security of global energy supplies.

Geopolitical tensions in West Asia have widened after Iran-aligned Houthi forces claimed responsibility for a drone attack targeting an oil refinery in Saudi Arabia’s Jazan region. The incident adds another layer of risk to an already fragile regional situation involving Iran, the US and Israel.

The Indian rupee is likely to remain closely linked to foreign fund flows and crude prices this week. The return of FPIs to Indian equities has provided support to the domestic currency, while uncertainty over energy prices remains a potential source of pressure.