Indian markets open weak on high crude prices, poor Q4 results of IT sector weigh on sentiment

NEW DELHI: The Indian stock markets opened lower on Friday, dragged down by a sharp rise in crude oil prices and escalating US-Iran tensions that have heightened geopolitical uncertainty. The Nifty 50 slipped around 150 points to 24,007 points in early trade, down 0.7 per cent, while the BSE Sensex shed over 623.73 points to hover near 77,042.27 points, down 0.8 per cent.

Most sectoral indices traded in the red, with Nifty IT among the worst hit. The weak start comes despite a mixed performance across Asian markets, where investors remained cautious even after a three-week extension of the Israel-Lebanon ceasefire failed to ease broader geopolitical concerns.

Japan’s Nikkei 225 gained 0.71 per cent while the Topix rose 0.30 per cent after core inflation accelerated to 1.8 per cent in March, its first rise in five months, adding to energy worries. South Korea’s Kospi fell 0.23 per cent, though the small-cap Kosdaq advanced 1 per cent. Hong Kong’s Hang Seng declined 0.61 per cent and China’s CSI 300 lost 0.28 per cent, while Australia’s S&P/ASX 200 was down 0.29 per cent.

Mahesh Ojha, analyst at KC Securities, said the market is likely to remain under pressure due to volatile geopolitical conditions and no signs of de-escalation between the US and Iran. “With the Strait of Hormuz effectively closed, crude oil prices have skyrocketed, adding to investor worries,” he said. Brent crude rose 0.7 per cent to around $105 per barrel, marking its second straight session above the crucial $100 mark”.

Domestically, a record 94 per cent voter turnout in the West Bengal elections may offer some cheer, but disappointing results from Infosys are expected to weigh on the IT sector and limit gains elsewhere, according to Ojha. “Weakness in IT stocks is likely to continue during Friday’s session,” Ojha added.

Sentiment was further dampened after JP Morgan downgraded Indian equities amid the ongoing Middle East conflict. HSBC also cut its rating on India to underweight from neutral, citing elevated energy risks. “The ongoing Middle East conflict has refocused attention on downside growth risks, given India’s significant reliance on imported energy,” the brokerage said in its report. While growth has shown signs of improvement over the last two quarters, HSBC believes the recovery will now be delayed.

On the earnings front, investors will watch quarterly results from Reliance Industries, Hindustan Zinc, IndusInd Bank, Adani Green Energy and Shriram Finance for cues on sectoral momentum.

Global cues remained mixed overnight. US stocks ended lower in choppy trade as hopes of a quick resolution to the Iran conflict faded and AI-driven disruption concerns resurfaced in the software sector. The Dow Jones fell 0.36 per cent to 49,310.32, the S&P 500 lost 0.41 per cent to 7,108.40 and the Nasdaq dropped 0.89 per cent to 24,438.50. (ANI)