Indian Markets Open Lower as Crude Oil Prices Surge Amid US-Iran Conflict

Mumbai: Domestic equity markets started Wednesday's session on a weak note, with the Sensex and Nifty both slipping as an uptick in global crude oil prices dampened investor confidence.

In early deals, the 30-share BSE Sensex shed 35.99 points to hit 78,097.31, while the 50-share NSE Nifty eased 31.15 points to 24,444.55. Losses widened as trading advanced, pulling the Sensex down 211.37 points to 77,953.66 and the Nifty 65.10 points lower to 24,411.15.

Stocks such as Bharti Airtel, Mahindra & Mahindra, UltraTech Cement, Adani Ports, Titan and Bajaj Finance dragged the Sensex down, while State Bank of India, Tech Mahindra, Axis Bank and Asian Paints managed to close the gap with gains.

Behind the market's soft start was a jump in Brent crude, the international oil benchmark, which rose 1.24 per cent to trade at USD 90.01 per barrel. Geojit Investments Limited's Chief Investment Strategist VK Vijayakumar told PTI that the market was resisting an upward breakout and instead moving within a narrow range, largely on account of Brent crude pushing back above the USD 89 threshold. He linked the persistent volatility in oil prices to the continuing tension between the US and Iran, citing a recent US military strike on a Panama-flagged container vessel as the latest flashpoint.

Regional markets in Asia painted a mixed picture on the day. South Korea's KOSPI rallied sharply, gaining 4.59 per cent, while Japan's Nikkei 225 and China's Shanghai SSE Composite index also posted gains. Hong Kong's Hang Seng, by contrast, slipped into negative territory.

Adding to the cautious tone was a weak overnight close on Wall Street. Meanwhile, it has been reported that the S&P 500 and Dow Jones Industrial Average had each dropped close to 0.3 per cent, with the Nasdaq Composite down 0.6 per cent, as traders turned watchful ahead of the release of US consumer inflation figures and amid the unresolved dispute between Washington and Tehran over access to the Strait of Hormuz.

Even so, foreign institutional investors continued to back Indian equities, pumping in a net Rs 258.55 crore on Tuesday, according to exchange data.

Wednesday's subdued start followed a decline in the previous session, when the Sensex ended 388.19 points, or 0.49 per cent, lower at 78,154.25, and the Nifty closed down 112.10 points, or 0.46 per cent, at 24,471.70.