Domestic equity benchmark indices started lower on Tuesday, following global market trends impacted by crude oil prices surging to $85 a barrel due to escalating tensions in the Middle East. Sensex opened 344.06 points or 0.44% lower at 77,272.34, while Nifty dropped over 100 points or 0.59% to 24,068.00 at the opening bell.
Financial and auto stocks were the major decliners among the sectoral indices. Nifty Financial Services Ex-Bank slipped 1.12%, and Nifty Auto fell 1%. Additionally, Nifty Private Bank, Realty, and Media also traded lower, declining up to 0.78%.
In contrast, metal and healthcare stocks showed resilience in the weak market. Nifty Metal gained 0.38%, while Nifty Healthcare advanced 0.14%. Among the Nifty 50 stocks, Shriram Finance, InterGlobe Aviation (IndiGo), Bajaj Finance, Larsen & Toubro, HCLTech, Mahindra & Mahindra, Kotak Mahindra Bank, and Bajaj Finserv were the top losers in early trade.
Market experts expressed concerns that the spike in crude oil prices due to geopolitical tensions could make investors cautious. They highlighted that while domestic fundamentals are supportive, sustained high oil prices might impact sectors reliant on fuel costs. Experts emphasized the critical levels for the Nifty at 24,300 on the upside and 24,000 on the downside, with potential breakout and retest scenarios.
The recent global market selloff followed the US military’s consecutive strikes on Iran, prompted by President Donald Trump’s naval blockade reinstatement and a proposed 20% fee. Brent crude surged 2.82% to $85.65 a barrel, and US West Texas Intermediate (WTI) crude gained nearly 3% to $80.42 a barrel. Asian markets, including Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi, were trading lower. On Wall Street, the S&P 500 closed 0.79% lower, and the Nasdaq Composite declined 1.55%.
