MUMBAI — Indian equity markets kicked off Thursday's session in negative territory, continuing a downward trajectory as investor sentiment remained under pressure from elevated global crude oil prices and heightened geopolitical risks in the Middle East.
In early morning trade, the 30-share BSE Sensex shed 172.48 points to stand at 77,786.41. Meanwhile, the broader 50-share NSE Nifty slipped 90.35 points to trade at 24,343.50.
Key Gainers and Laggards
Market heavyweights faced selling pressure during early hours. Blue-chip counters including Reliance Industries, ICICI Bank, Kotak Mahindra Bank, Infosys, UltraTech Cement, and Titan were among the prominent laggards dragging down the benchmark indices.
On the flip side, stock-specific buying offered selective relief. InterGlobe Aviation (IndiGo), Tech Mahindra, Eternal, and power utility giant NTPC emerged as key gainers in the morning trade.
Crude Oil & Geopolitical Overhang
The primary catalyst weighing down domestic equities remains the unresolved geopolitical standoff between the United States and Iran around the strategic Strait of Hormuz, a critical bottleneck for global crude shipments.
"Elevated crude oil prices, driven by the continuing US-Iran standoff over the Strait of Hormuz, remain the primary overhang for domestic equities and are likely to keep investor sentiment measured," noted Ponmudi R, Chief Executive Officer at Enrich Money.
Although Brent crude dipped slightly by 0.82% to trade around $88.25 per barrel during Asian hours, analysts emphasized that energy markets remain vulnerable to news flows.
"Although Brent crude has eased modestly to below $89 per barrel, the unresolved situation in the Strait of Hormuz continues to keep the geopolitical risk premium in energy markets elevated," stated Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
Mixed Global Cues & FII Outflows
Despite domestic headwinds, global market trends provided a mixed backdrop. Asian equity markets showed resilience following a positive overnight rally on Wall Street, triggered by softer-than-expected US inflation data that calmed fears of further Federal Reserve rate hikes. South Korea’s Kospi led Asian gains with a dramatic surge of nearly 5%, while Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all traded higher.
Institutional data, however, highlights persistent foreign selling in Indian domestic equities. Foreign Institutional Investors (FIIs) net sold shares worth ₹1,002.50 crore on Wednesday.
This follow-up weakness comes after Wednesday's session where the Sensex closed down 187.90 points (0.24%) at 77,966.35, while the Nifty dropped 35.75 points (0.15%) to finish at 24,435.95. Traders remain cautious as market participants closely track crude oil movements and global macroeconomic indicators.
