Mumbai: Indian stock markets opened sharply lower on Thursday as rising crude oil prices and growing geopolitical tensions between the United States and Iran weighed on investor sentiment.
Benchmark indices fell in early trade after Brent crude crossed the key mark of $100 per barrel, raising concerns about inflation and economic stability.
The Sensex dropped 972.99 points, or 1.27 per cent, to 75,890.72 in early trading. The Nifty also slipped 299.45 points, or 1.22 per cent, to 23,567.15 as selling pressure was seen across several sectors.
“From a technical perspective, the 24,000–24,050 zone is expected to act as immediate resistance, while the 23,600–23,500 range is likely to serve as a crucial support level,” an analyst stated.
Market volatility also increased sharply. The India VIX jumped 6.08 per cent to 22.34 soon after the opening bell — indicating that investors expect higher uncertainty in the near term due to the ongoing geopolitical conflict and rising energy prices.
Several heavyweight stocks dragged the market lower. Shares of InterGlobe Aviation, Tata Motors, and Larsen & Toubro were among the top losers in the Nifty index during early trade.
Broader markets performed even worse than the benchmark indices. The Nifty Midcap 100 was down 1.70 per cent, while the Nifty Smallcap 100 slipped 1.74 per cent.
Among sectoral indices, the Nifty Auto emerged as the worst-performing sector. The Nifty Consumer Durables and Nifty Realty also saw significant declines in early trade.
In contrast, the Nifty IT index showed relative resilience and emerged as the best-performing sector of the day, although it was still trading slightly in the red.
Meanwhile, global crude oil prices surged sharply amid concerns over supply disruptions. Brent crude jumped nearly 9.16 per cent to $101.53 per barrel during the Asian trading session as investors assessed whether emergency oil releases would be enough to offset supply disruptions caused by the ongoing conflict between the US and Iran.
The May futures contract of Brent crude was also trading 8.15 per cent higher at $100.6 per barrel, adding to worries about rising input costs and potential pressure on inflation for oil-importing countries like India.
(IANS)
