Mumbai: Indian equity benchmarks opened sharply lower on Friday as weak global cues, escalating Middle East tensions and surging crude oil prices triggered selling across most sectors.
The BSE Sensex opened nearly 600 points, or 0.79%, lower at 74,309.16, while the NSE Nifty 50 dropped 207.50 points, or 0.88%, to begin trade at 23,270.30.
Metal, Realty Stocks Lead Decline
Selling pressure was widespread in the Indian stock market, with Nifty Metal plunging more than 3% to emerge as the worst-performing sectoral index in early trade.
Nifty Realty declined over 2%, while consumer durables, financial services, banking, automobile and cement indices fell by up to 1%.
Nifty IT bucked the broader weakness, gaining 0.10% and remaining the only sectoral index in positive territory.
Brent Crude Near $108
Market sentiment weakened further as Brent crude oil prices climbed to around $108 per barrel amid escalating tensions in the Middle East.
Persistently high crude prices could increase India's import bill, add to inflationary pressures and weigh on economic growth and corporate earnings.
Rising US bond yields also emerged as a concern. The US 10-year Treasury yield hovered around 4.96%, moving closer to the crucial 5% mark.
Asian markets traded lower after higher oil prices triggered losses on Wall Street. Stronger US producer inflation data also revived concerns over another Federal Reserve interest rate increase.
Nifty Support at 23,260
On the technical front, Nifty support is seen around 23,260, followed by the 23,000 level.
The previous session's long lower wick indicated the possibility of base formation, although recovery attempts remain weak.
On the upside, 23,520 remains an important resistance marker for the Nifty.
Meanwhile, strong subscriptions and listing gains in the IPO market are also attracting investor funds that might otherwise flow into the secondary market, adding another layer of pressure to equities.
