Indian equity markets started the week on a lower note due to a rise in crude oil prices nearing $80 per barrel amidst geopolitical tensions. The Sensex opened at 76,963.35, down over 600 points, while the Nifty began at 24,039.40, declining by 167.50 points.
Most sectors traded in the red, with indices like Nifty Auto and Nifty Metal falling up to 1%. Nifty Consumer Durables, Nifty PSU Bank, and Nifty Private Bank also experienced selling pressure, while Nifty IT and Nifty Pharma saw gains of up to 0.6%.
Market experts noted that the ongoing fluctuations in the West Asia crisis are causing uncertainty for energy importers like India. They highlighted that the price of crude oil, currently around $80, is a critical factor for the market, with potential significant impacts if it surpasses $90.
IndiGo, Tata Steel, Asian Paints, Shriram Finance, Bajaj Finance, and HDFC Bank were among the top losers. Foreign institutional investor (FII) inflows are providing stability to the domestic market, with investors increasingly turning towards India amid risks in South Korea’s chip sector.
In global news, US forces targeted multiple locations in Iran, while Iran’s Revolutionary Guards claimed attacks on US military bases in Kuwait and Bahrain. Brent crude surged over 4% to trade at around $80 per barrel, with US West Texas Intermediate (WTI) crude rising by 4.55% to $74.66 per barrel.
Asian markets also saw declines, with Japan’s Nikkei falling by 1.6%, Hong Kong’s Hang Seng dropping by 0.20%, and South Korea’s KOSPI slumping by more than 6%.
