Domestic equity markets opened in the red on Friday, extending the ongoing selling pressure amid persistent foreign outflows, rising crude oil prices and geopolitical tensions in West Asia.
The benchmark indices began the session lower in early trade, reflecting cautious investor sentiment.
The Nifty 50 opened at 23,462.50, down 176.65 points or 0.75 per cent, while the BSE Sensex started at 75,444.22, falling 590.20 points or 0.78 per cent.
Market experts attributed the weakness to sustained selling by foreign portfolio investors (FPIs) and uncertainty in global markets triggered by the ongoing West Asia crisis.
Ajay Bagga, banking and market expert, said Indian equities continue to face pressure due to heavy foreign investor outflows.
“Indian markets are pointing to continued weakness. FPIs have been consistent high sellers. Weakness in global markets usually translates into more FPI outflows from India to meet margin calls elsewhere, adding another layer of negativity to Indian markets,” Bagga told ANI.
He added that geopolitical tensions and volatility in energy markets are weighing on global investor sentiment.
“Friday the 13th is not showing any signs of relief from the war, elevated oil and gas prices, and looming shortages. The US has allowed around 120 million barrels of Russian oil sitting in tankers on the high seas to be bought. However, the oil price move after this decision was muted,” Bagga said.
According to him, global oil supply remains tight due to disruptions linked to the Strait of Hormuz, affecting the ability of major Gulf producers to increase supply.
“The swing capacity lies in the Gulf with Saudi Arabia and Abu Dhabi, both of whom are constrained by the closure of the Strait. Russia alone will not be able to move the needle. India has already secured 30 million barrels of Russian oil,” he said.
Bagga further noted that inflationary pressures are gradually building in the economy. India’s Consumer Price Index (CPI) rose to 3.21 per cent, largely driven by higher food prices.
“Imported inflation is rising under the surface, even though the government is absorbing the petrol and diesel impact for now. Expect inflation to rise from March onwards,” he added.
Sectoral indices on the National Stock Exchange (NSE) showed broad-based weakness. Nifty Auto declined more than 1 per cent, Nifty FMCG fell 0.29 per cent, Nifty IT dropped 0.67 per cent, Nifty Metal slipped 0.53 per cent, while Nifty Private Bank declined 0.96 per cent, indicating widespread selling across sectors.
Meanwhile, Brent crude oil prices crossed USD 100 per barrel, as geopolitical tensions and supply disruptions pushed investors toward safer assets.
Global markets also reflected a risk-off sentiment. US markets closed sharply lower following fresh geopolitical developments. The Dow Jones declined 1.56 per cent to 46,677, the S&P 500 fell 1.5 per cent to 6,672, and the Nasdaq dropped 1.72 per cent to 22,311.
In Asian markets, most indices traded in the red. Japan’s Nikkei 225 fell 1.17 per cent to 53,814, Hong Kong’s Hang Seng declined 0.57 per cent to 25,570, Taiwan’s Weighted Index slipped 0.39 per cent to 33,452, and South Korea’s KOSPI dropped 1.57 per cent to 5,496.
However, Singapore’s Straits Times Index traded slightly higher, gaining 0.11 per cent to 4,860. (ANI)
