Indian markets open lower, Sensex down over 200 pts; Nifty below 24,100 amid surging oil prices

MUMBAI: Indian benchmark indices opened on a muted note amid higher commodity prices. The Sensex opened marginally lower at 77,218.05 against the previous close of 77,235.46 while the Nifty opened below 24,200 level as conflicting signals from Tehran and Washington over Strait of Hormuz weighed down on investors’ sentiment.

The Nifty was trading at around 24,072.25, down 82.65 points or 0.34 per cent while the Sensex was trading at around 76,990.55 down 244.91 points or 0.32 per cent at the time of reporting. All broad market indices traded in the red. Sectorally, most indices remained under pressure including — auto, metal, PSU Bank, realty, consumer durables, financial services, chemicals, cement. Meanwhile, FMCG, IT, oil & gas and telecom indices traded in the green during the early morning trade.

BSE, HCL Tech, Infosys, Eternal, NTPC, ITC, Hindustan Unilever among others were the top gainers on BSE while Tata Steel, Asian Paint, SBI, LT, M&M, Bajaj Finance, Power Grid, BEL among others were the top losers. Likewise, on NSE, HCL Tech, Infosys, Eternal, NTPC, ITC, ONGC, Wipro, Bajaj Auto, Bharti Airtel among others were the top gainers while Hindalco, Tata Steel, Grasim, BEL, Axis Bank, Reliance, Indi Go, JSW Steel, TCS among others were the top drags.

Gold prices surged during early Asian trading on Wednesday following easing concerns over US Treasury yields. The yellow metal was trading at around USD 4,355.42 at the time of reporting. Oil prices edged higher in early Wednesday trading, extending gains for a fourth straight session. Brent crude was trading at around USD 91.56 per barrel while crude oil was trading at around USD 85.59 per barrel.

Market and banking expert Ajay Bagga noted, “Global markets are under pressure today as escalating US-Iran hostilities, Trump’s renewed threats, and a missile strike on the UAE fuel risk aversion. Bond yields on long maturities surged to multi-year highs, Brent crude climbed above USD 91 per barrel, diesel prices spiked, and equities sold off sharply with AI-linked stocks leading declines”.

Bagga added, “Global markets are caught in a classic squeeze: surging energy costs, rising long-bond yields, and equity weakness. The AI trade, once the market’s pillar, is now unwinding under the weight of higher funding costs and geopolitical uncertainty. With Trump’s rhetoric hardening and Canada’s tariff deadline looming, investors face a volatile mix of geopolitical risk, inflationary shocks, and tightening financial conditions.” As per Bagga, surging Brent which may led to diesel hike could weigh on transport, autos, and cement margins while PSU banks and energy names may see volatility.

Market analyst Vipin Dixena noted, “The Indian market is trying to stabilise after six consecutive sessions of decline, but the underlying sentiment remains cautious. At the same time, I see some encouraging signs in domestic flows, with FIIs turning buyers on Tuesday after a prolonged selling phase. More importantly, the latest earnings season has been relatively strong.”

From the technical perspective, Nifty is now at a crucial juncture as per Dixena. “The 24,000-24,050 zone is an important support area, and holding this zone could trigger a technical rebound after the recent decline. On the upside, 24,300-24,400 remains the immediate resistance zone”, the analyst noted. (ANI)