Indian stock markets gave up most of their early gains on Thursday as investors turned cautious due to rising oil prices, continued foreign investor selling, and geopolitical tensions.
The Sensex fell sharply from the day’s high and dropped around 300-500 points during intraday trade, while the Nifty slipped below the 24,400 mark.
Both indices had opened higher after rallying more than 1 percent in the previous session, but profit booking and weak global cues later pulled the indices lower.
The intraday high of the Sensex was 78,339 points, but the 30-share index was hovering around 77,947 points at 12 PM.
The Nifty also declined from its intraday high of 24,423 points to 24,361 by noon.
One of the main reasons behind the market weakness was the rise in Brent crude oil prices, which climbed above $100 per barrel again.
Oil prices increased as investors closely tracked developments around a possible peace deal in the Middle East.
Higher crude prices are a concern for India because the country imports most of its oil needs, and rising energy costs can hurt inflation and corporate earnings.
Foreign institutional investors (FIIs) also continued to sell Indian equities, adding pressure on the market. Investors remained worried about global uncertainty and geopolitical risks, especially tensions linked to the Middle East situation.
Sector-wise, auto and metal stocks showed some strength, but IT, FMCG, and realty shares came under pressure.
Broader markets performed slightly better, with midcap and smallcap stocks staying in positive territory for most of the session.
Analysts said that after the recent rally, traders were also booking profits at higher levels. Market experts believe the Nifty needs to stay above key support levels to maintain upward momentum in the coming sessions.
Despite the volatility, some experts remain hopeful that easing global tensions and cooling oil prices could help markets recover in the near term.
