Domestic equity markets started lower on Thursday due to weak global cues, impacted by geopolitical tensions in West Asia and selling pressure in the US and Asian markets. The Sensex opened at 73,935.83, down 0.55%, or 410 points, while the Nifty fell over 100 points, a 0.5% decrease. Sectoral indices like Nifty Realty and Nifty IT saw declines of 0.67% and 0.53%, respectively. Additionally, pharma and healthcare indices dropped by up to 0.5%.
Nifty Consumer Durables, Nifty Oil & Gas, Nifty Cement, and Nifty Chemicals, on the other hand, were trading slightly higher. Among the top losers of the Nifty index were Trent, Eicher Motors, Cipla, Infosys, and HDFC Bank, with declines of up to 1%. Analysts noted that ongoing uncertainty in West Asia and foreign portfolio investor (FPI) selling continue to pose challenges, outweighing positive factors.
Market experts highlighted that the current volatile environment poses risks for trading, suggesting investors take a cautious “wait and watch” approach. They also mentioned that while further weakness may provide opportunities to accumulate quality stocks affected by temporary foreign flows. In other news, Israel and Lebanon have agreed to a ceasefire, raising hopes for reduced tensions in the Iran conflict.
Crude oil prices saw a decline, with Brent crude dropping 1.33% to $96.50 per barrel and US West Texas Intermediate (WTI) slipping 1.31% to $94.76 per barrel. Across Asia, markets faced pressure, with Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s KOSPI, and Indonesia’s Jakarta Composite experiencing declines of up to 3%. On Wall Street, the S&P 500 fell by 0.74%, and the Nasdaq closed 0.9% lower.
