Sensex, Nifty flat at open as India VIX jumps 5%

India’s benchmark Sensex and Nifty opened broadly flat on Monday, with early support coming from bank and information technology shares as traders kept risk exposure in check.

At the same time, India VIX rose roughly 5%, a move that signaled higher near-term uncertainty even though the headline indices held close to the prior session’s levels. Market participants described trading as cautious, with positioning restrained ahead of key US inflation figures due later in the week.

India VIX rises as investors wait for US inflation data Traders said flows were subdued as investors looked ahead to the US consumer price index, due on Friday, Aug. 14, 2026. Officials said the rise in domestic volatility measures alongside steady benchmarks suggested a market driven more by sector-led moves than a broad, risk-on rotation.

According to market participants, this pattern can reflect narrower participation: select pockets of strength help keep the main indices stable, while hedging demand lifts implied volatility. Officials described the session as one where the index level alone did not capture the uneven tone under the surface.

Crude prices and Strait of Hormuz uncertainty weigh on sentiment Traders said higher crude prices, linked to continued uncertainty around the Strait of Hormuz, limited upside in domestic large-cap stocks. They described the external backdrop as a constraint on sentiment, keeping early gains modest and preventing a decisive push higher.

Bank and IT indices led mild advances in early trade, but the support was not strong enough to lift the benchmarks meaningfully. Market participants said the combination of elevated volatility readings and flat index performance pointed to selective buying rather than broad demand across sectors.

Friday’s CPI print seen as key for global risk appetite Traders said attention is likely to remain centered on the US consumer price index, with an upside surprise expected to pressure global equities and raise demand for safe-haven assets. Market participants added that a stronger-than-expected print could tighten global financial conditions, compress local equity multiples, and revive borrowing-cost concerns for leveraged sectors.

They also said a softer inflation reading could ease pressure and support a broader advance in Indian equities. Until that data is known, participants described near-term direction as uncertain, with volatility measures indicating sensitivity to headlines even if the main indices stay range-bound.