Indian benchmark indices began Wednesday’s trading session with significant losses as investors reacted to renewed geopolitical tensions in the Middle East.
The Sensex opened 472.96 points, or 0.61 per cent, lower at 76,471.32, while the Nifty started 199.80 points, or 0.82 per cent, down at 23,858.
Several sectoral indices faced heavy selling during early trading. The Nifty Realty index dropped nearly 2 per cent, while the Nifty IT and Nifty Auto indices declined 1.82 per cent and 1.78 per cent, respectively.
Financial services, cement, media, FMCG and metal stocks also traded in negative territory.
Analysts said strong domestic economic activity and better corporate earnings prospects continue to support Indian markets.
The latest rise in crude oil prices has created an immediate concern for investors as escalating US-Iran tensions raise fears of possible supply disruptions.
India’s comfortable current account position and sizeable foreign exchange reserves could help the country absorb some of the pressure from higher oil costs.
Experts identified rising US bond yields as a potential source of greater volatility. They said a climb in the 10-year US Treasury yield towards 5 per cent could increase selling pressure across global equity markets.
Technical indicators suggest continued weakness after the Nifty failed to regain the 24,000-24,060 range on multiple occasions. A clear break below this support zone could push the index towards 23,800, followed by 23,575.
The 24,150-24,215 region remains an important hurdle. A sustained move above this range could restore buying momentum.
Asian equities traded lower as a sell-off in global bonds weakened investor sentiment.
Crude oil prices had already jumped by more than $4 per barrel on Tuesday, reaching a five-week high as rising US-Iran tensions heightened concerns about disruptions to global supplies.
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