Indian equity markets opened on a weak note on Thursday as rising crude oil prices and increasing geopolitical tensions in West Asia dampened investor sentiment.
Benchmark indices Sensex and Nifty traded lower in early deals amid concerns over the impact of higher energy prices on inflation and economic growth.
The 30-share BSE Sensex declined over 400 points to 76,344 during initial trading, while the broader NSE Nifty fell 120 points to 23,876.
Several heavyweight stocks dragged the benchmark indices lower. Infosys, Bajaj Finance, HDFC Bank, State Bank of India, NTPC and Reliance Industries were among the major laggards from the Sensex pack while Trent and Eternal were trading in positive territory.
The decline in equities came as crude oil prices continued to surge amid concerns over possible disruptions to global energy supplies due to the worsening West Asia conflict.
Brent crude, the global benchmark, jumped 2.27% to $96.20 per barrel during early trade.
Market sentiment remained fragile after reports of attacks on Saudi oil tankers by Yemen’s Houthi rebels raised fears of further escalation in the region and potential disruptions to crude shipments.
Foreign institutional investors (FIIs) also remained cautious, selling equities worth Rs 819.20 crore on Wednesday, according to exchange data. The outflow came after a brief pause in selling activity.
Asian markets traded mixed on Thursday. South Korea’s KOSPI gained 3.15%, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng were also trading higher. However, Shanghai’s SSE Composite index remained under pressure. US markets ended lower in the previous session.
The domestic market had witnessed a sharp correction on Wednesday, with the Sensex declining 715.06 points, or 0.92%, to close at 76,755.05. The Nifty also fell 191.45 points, or 0.79%, ending the session at 23,996.25.
Investors are now closely monitoring crude oil movements, geopolitical developments and global market trends for further direction.
