Domestic equity markets started on a lower note on Friday, with benchmark indices decreasing nearly 1% each due to increased global uncertainty and a surge in crude oil prices. Sensex opened 683.20 points or 0.89% lower at 75,708.19, while Nifty dropped 203.25 points or 0.85% to 23,666.35. All sectoral indices traded in the negative territory, with realty, metal, and financial stocks experiencing significant declines.
Nifty Realty fell by 0.95%, Nifty Metal slipped by 0.92%, and Nifty Consumer Durables dropped by 0.76%. Nifty PSU Bank fell by 0.75%, Nifty Auto lost 0.74%, and Nifty Private Bank, Nifty FMCG, and Nifty IT also saw declines of up to 0.60%. Market experts highlighted that uncertainty and volatility are prevailing, impacting investor sentiment with no immediate signs of relief.
Experts attributed the spike in Brent crude prices to about $100 to the recent attack on Saudi tankers by the Iran-backed Houthis in the Red Sea. They warned that such high prices could reignite India’s Balance of Payments concerns. Additionally, the rise in the US 10-year Treasury yield to 4.7% poses a near-term risk for global equity markets. From a technical viewpoint, analysts noted that the Nifty has fallen below its key moving averages and is now moving towards the 23,645-23,500 support zone.
The weak market opening mirrored widespread losses in global markets. In Asia, Japan’s Nikkei dropped around 3%, Hong Kong’s Hang Seng slumped over 3%, and South Korea’s KOSPI plunged more than 5%. On Wall Street, the S&P 500 declined by 1.21%, and the Nasdaq fell by 2.15%. Brent crude remained above $100 per barrel, climbing 0.43%, while US West Texas Intermediate (WTI) crude rose by 0.69% to $92.83 a barrel.
