Mumbai: Domestic equity markets opened lower on Friday, with benchmark indices declining almost 1 per cent each amid heightened global uncertainty and a surge in crude oil prices, with Brent crude crossing the $100-per-barrel mark.
Sensex opened 683.20 points or 0.89 per cent lower at 75,708.19, while Nifty declined 203.25 points or 0.85 per cent to 23,666.35.
All sectoral indices traded in the red, with realty, metal and financial stocks witnessing the sharpest declines.
Nifty Realty fell 0.95 per cent, while Nifty Metal slipped 0.92 per cent.
Similarly, Nifty Consumer Durables dropped 0.76 per cent, Nifty PSU Bank fell 0.75 per cent, and Nifty Auto lost 0.74 per cent. Nifty Private Bank, Nifty FMCG and Nifty IT also declined by up to 0.60 per cent.
According to market experts, uncertainty and volatility continue to dominate investor sentiment with no immediate signs of easing.
“The attack on Saudi tankers by the Iran-backed Houthis in the Red Sea is the main reason for the recent sharp spike in Brent crude to about $100. Such high prices are bound to revive India’s Balance of Payments concerns,” they said.
They also pointed out that the rise in the US 10-year Treasury yield to 4.7 per cent is another near-term risk for global equity markets.
From a technical perspective, analysts said the Nifty has slipped below its key moving averages and is now headed towards the 23,645-23,500 support zone, while the 24,000-24,100 range is expected to act as a strong resistance zone.
Additionally, the weak opening also mirrored broad-based losses across global markets.
In Asia, Japan’s Nikkei tumbled around 3 per cent, Hong Kong’s Hang Seng slumped more than 3 per cent, while South Korea’s KOSPI plunged over 5 per cent.
Overnight, Wall Street ended lower, with the S&P 500 falling 1.21 per cent and the Nasdaq dropping 2.15 per cent.
International oil benchmark Brent crude climbed 0.43 per cent to remain above the $100-per-barrel mark, while US West Texas Intermediate (WTI) crude rose 0.69 per cent to $92.83 a barrel.
(IANS)
