MUMBAI: Benchmark Indian equities witnessed a sharp sell-off in early trade on Friday, tracking global macroeconomic headwinds, surging crude oil prices, and escalating geopolitical tensions in West Asia.
The 30-share BSE Sensex slumped 628.24 points to open at 74,257.69, while the broader 50-share NSE Nifty dropped 221.20 points to touch 23,255.10.
Market sentiment remained fragile as global crude oil benchmarks spiked. Brent crude traded 0.95% higher at $108.7 per barrel, hitting its highest level since May due to persistent disruptions in Middle Eastern oil flows and ongoing US-Iran tensions alongside regional conflicts involving Houthi forces and Saudi Arabia.
Market experts warn that crude prices hovering near the $110-per-barrel mark will exert immense pressure on India's import bills, domestic inflation, current account deficits, and corporate profit margins, while severely limiting the central bank’s scope for monetary easing.
Major laggards on the Sensex front included Bajaj Finance, InterGlobe Aviation, Mahindra & Mahindra, Tata Steel, UltraTech Cement, and Axis Bank. Conversely, selective buying helped Tech Mahindra, HCL Tech, Infosys, Bharti Airtel, and ITC trade in the green.
The cautious investor sentiment was further compounded by weak global cues. Asian indices—including South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng—traded significantly lower following a negative close on Wall Street overnight.
According to exchange data, Foreign Institutional Investors (FIIs) continued their capital flight, offloading equities worth Rs 438.24 crore in the previous session. Analysts advise investors to remain cautious as geopolitical developments and shifting commodity prices dictate the near-term trajectory of global and domestic markets.
