Indian stock markets opened significantly lower on Thursday as rising crude oil prices and escalating geopolitical tensions between the United States and Iran dampened investor sentiment.
Benchmark indices declined in early trade after Brent Crude crossed the key $100-per-barrel mark, raising concerns about inflationary pressures and broader economic stability.
The BSE Sensex fell 972.99 points, or 1.27 per cent, to 75,890.72 during early trading. Meanwhile, the Nifty 50 slipped 299.45 points, or 1.22 per cent, to 23,567.15 as selling pressure spread across multiple sectors.
“From a technical perspective, the 24,000–24,050 zone is expected to act as immediate resistance, while the 23,600–23,500 range is likely to serve as a crucial support level,” an analyst stated.
Market volatility also rose sharply. The India VIX jumped 6.08 per cent to 22.34 shortly after the opening bell, signalling expectations of increased uncertainty in the near term due to geopolitical tensions and higher energy prices.
Several heavyweight stocks dragged the market lower. Shares of InterGlobe Aviation, Tata Motors and Larsen & Toubro were among the top losers on the Nifty index in early trade.
Broader markets also faced deeper losses. The Nifty Midcap 100 declined 1.70 per cent, while the Nifty Smallcap 100 dropped 1.74 per cent.
Among sectoral indices, the Nifty Auto emerged as the worst-performing segment. The Nifty Consumer Durables and Nifty Realty indices also registered notable declines.
In contrast, the Nifty IT index showed relative resilience and emerged as the best-performing sector of the session. It, however, continued to trade slightly in negative territory.
Global oil prices surged amid fears of supply disruptions linked to the ongoing US-Iran conflict.
Brent crude climbed nearly 9.16 per cent to $101.53 per barrel during the Asian trading session. Investors assessed whether emergency oil releases would be sufficient to offset supply disruptions.
The May futures contract of Brent crude was also trading 8.15 per cent higher at $100.6 per barrel. This added to concerns over rising input costs and inflationary pressures for oil-importing economies such as India.
Also Read: Oil Prices Fall After Reports IEA May Release Emergency Crude Reserves
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