India’s benchmark equity indices opened sharply lower on Thursday as Brent crude prices surged past USD 120 per barrel, weighing on investor sentiment amid escalating tensions in West Asia.
The Nifty 50 fell 278.45 points, or 1.15 per cent, to open at 23,899.20, while the Sensex dropped 914.12 points, or 1.18 per cent, to 76,582.24.
Market participants attributed the decline to the spike in crude prices and persistent geopolitical uncertainty, which have heightened volatility and triggered risk aversion.
Banking and market expert Ajay Bagga said early indicators, including GIFT Nifty, had already signalled a gap-down opening of over 140 points, reflecting weak global cues.
He added that as a major oil importer, India is facing pressure on its currency and bond markets, with the rupee weakening towards Rs 95 per US dollar and bond yields hardening.
“Today marks the monthly expiry for BSE contracts, which is expected to amplify the downward volatility triggered by the crude spike and FII outflows. The market is currently in a ‘wait-and-watch’ mode on whether the US will move beyond a blockade to direct military action, which remains the primary tail risk in the coming weeks. With a long weekend ahead, expect sharp moves and position unwinding in Indian markets,” Bagga said.
Geopolitical tensions have intensified after US President Donald Trump said the naval blockade of the Strait of Hormuz would continue until Iran agrees to a new nuclear and security deal. Washington has rejected Tehran’s proposal to reopen the Strait ahead of negotiations, fuelling concerns over prolonged supply disruptions.
Sectorally, selling was broad-based, with all major NSE indices opening in the red. Nifty Auto declined 1.84 per cent, Nifty FMCG fell 1.04 per cent, Nifty Metal dropped 1.25 per cent, Nifty Media slipped 0.96 per cent, and Nifty Private Bank lost 1.48 per cent. Nifty IT was down 0.6 per cent, while PSU Bank stocks fell 1.73 per cent.
In commodities, Brent crude futures climbed to a four-year high of USD 121 per barrel in early trade after opening around USD 111 per barrel. WTI crude also remained elevated, trading near USD 108 per barrel.
Other Asian markets mirrored the weakness. Japan’s Nikkei 225 fell 1.13 per cent to 59,242, Hong Kong’s Hang Seng declined 1.32 per cent to 25,766, and South Korea’s Kospi slipped 0.27 per cent to 6,672. Taiwan’s weighted index, however, bucked the trend, rising 0.48 per cent to 39,475.
(With ANI inputs)
