Domestic equity markets started on a lower note on Wednesday following weak global cues due to renewed geopolitical tensions in the Middle East. Sensex began 0.46% down at 77,816.45, while Nifty dropped 0.57% to 24,259.55.
Nifty Oil & Gas saw the most significant decline among sectoral indices, falling over 1%. Other sectors like Nifty Media, Nifty PSU Bank, Nifty Realty, Nifty Cement, Nifty Metal, Nifty Auto, and Nifty FMCG also experienced losses of nearly 1%.
In contrast, pharma stocks performed well, with Nifty Pharma rising by 0.73%, and Nifty IT showing a 0.25% increase. Among the Nifty 50 stocks, Shriram Finance, InterGlobe Aviation, Asian Paints, Bajaj Finance, Eicher Motors, Larsen & Toubro, and JSW Steel were the top losers.
Market analysts attributed the weak opening to negative global cues, particularly the sell-off in US technology stocks and subdued sentiment in Asian markets. Moreover, escalating geopolitical tensions in the Middle East led to crude oil prices surpassing $75 a barrel.
The near-term outlook remains cautious, with the Nifty encountering resistance at around 24,450 and immediate support at 24,200. Analysts warned that a sustained breach below this support level could push the index towards the crucial 24,000 mark.
The US military conducted strikes against Iran in response to alleged attacks on commercial vessels in the Strait of Hormuz. This action, aimed at imposing costs on Iran, led to a surge in Brent crude by nearly 3% to $76.39 a barrel and WTI crude by over 3% to $72.72 a barrel.
Asian markets showed mixed trends, with Japan’s Nikkei slightly down, Hong Kong’s Hang Seng up by over 2%, and South Korea’s KOSPI trading more than 1% lower.
