Mumbai: Domestic equity benchmarks opened lower on Thursday amid weak global cues and rising geopolitical tensions in West Asia.
Sensex opened at 76,515.10, down 239.95 points or 0.31 per cent, while Nifty started the session at 23,904.80, slipping 91.45 points or 0.38 per cent.
Sector-wise, Nifty Oil & Gas was the worst performer, declining nearly 1 per cent. It was followed by Nifty Pharma, Nifty Realty, Nifty PSU Bank, Nifty 500 Healthcare, Nifty Cement and Nifty Private Bank.
While Nifty FMCG and Nifty MidSmall IT & Telecom traded in the green.
Among Nifty stocks, Dr Reddy’s Laboratories, IndiGo, Infosys, Bajaj Finance, Cipla, Tata Steel and Larsen & Toubro were top losers, falling up to 4 per cent.
According to market experts, the Houthis’ aggressive entry into the Iran-US conflict by attacking Saudi Arabian tankers in the Red Sea has intensified the West Asia crisis and pushed Brent crude prices sharply higher.
“When Brent crude trades above $95 a barrel, as it is now, it is bound to have a sentimental impact on the Indian market. India’s vulnerability to high oil prices is once again becoming a macro concern,” they said.
Analysts believe the negative sentiment is likely to weigh on equity markets and keep stock prices largely subdued in the near term.
However, they see the current correction as an opportunity for long-term investors to gradually accumulate high-quality stocks in growth segments at attractive valuations.
On the commodities front, international benchmark Brent crude climbed 2.57 per cent to trade above $96 per barrel, while US West Texas Intermediate (WTI) crude gained more than 2 per cent to $88.67 per barrel.
Across Asia, markets were mixed. Japan’s Nikkei traded marginally higher, while Hong Kong’s Hang Seng and South Korea’s KOSPI surged by nearly 3 per cent. Taiwan’s Weighted Index declined around 1 per cent, and Singapore’s Straits Times slipped 0.8 per cent.
Additionally, US markets ended lower, with the S&P 500 declining 0.14 per cent and the Nasdaq falling 0.57 per cent.
(IANS)
