Markets – Indian Shares Open Lower as Middle East Risks Lift Oil Prices
Markets – Stock market updates remained in focus on Wednesday as Indian equities began the session on a weak note, following mixed overseas signals and renewed concerns over tensions in the Middle East. Higher crude oil prices and uneven trading across Asian markets added pressure on investor sentiment at the opening bell.
The BSE Sensex started 364.27 points lower, down 0.46 per cent at 77,816.45. The NSE Nifty 50 also declined by 139.15 points, or 0.57 per cent, to open at 24,259.55.
Energy and cyclical sectors lead early decline
Selling was broad-based across several sectors, with the Nifty Oil & Gas index falling more than 1 per cent. Shares linked to media, public sector banks, real estate, cement, metals, automobiles and fast-moving consumer goods also moved lower, with most of these indices losing up to nearly 1 per cent.
Among individual Nifty 50 stocks, Shriram Finance, InterGlobe Aviation, Asian Paints, Bajaj Finance, Eicher Motors, Larsen & Toubro and JSW Steel were among the major early losers.
Pharma and IT stocks provide limited support
The weakness was not uniform across the market. Pharmaceutical companies attracted buying interest, helping the Nifty Pharma index rise 0.73 per cent in early trade. The Nifty IT index also remained positive, gaining 0.25 per cent, as select technology shares found support despite concerns around the broader global technology sector.
Market participants said the cautious opening reflected a combination of international developments rather than any single domestic trigger. A recent sell-off in US technology stocks, along with subdued sentiment in several Asian markets, kept risk appetite under pressure.
Middle East developments push crude prices higher
Investor attention also turned to the Middle East after the US military announced strikes against Iran. The action was described as a response to alleged Iranian attacks on three commercial vessels travelling through the Strait of Hormuz.
US Central Command said its forces had begun what it called powerful strikes intended to impose costs on Iran over attacks targeting commercial shipping. The development raised fresh concerns about possible disruption to energy supplies and shipping routes in the region.
Crude oil prices moved sharply higher after the escalation. Brent crude, the global benchmark, climbed nearly 3 per cent to $76.39 a barrel. US West Texas Intermediate crude rose more than 3 per cent to $72.72 a barrel.
Higher oil prices are closely watched by Indian investors because the country imports a significant share of its crude requirements. A sustained rise in energy costs can affect inflation expectations, corporate margins and the trade balance.
Technical levels remain important for Nifty
Analysts said the Nifty may continue to face near-term volatility as global developments remain uncertain. The index is seen encountering resistance near the 24,450 level, while immediate support is placed around 24,200.
A decisive fall below 24,200 could increase selling pressure and bring the 24,000 level into view, according to market observers. However, the market’s direction may also depend on movements in crude oil, foreign investor activity and further developments in the Middle East.
Asian markets trade mixed after Wall Street gains
Asian equity markets showed a mixed trend during the session. Japan’s Nikkei traded marginally lower, while South Korea’s KOSPI declined by more than 1 per cent. Hong Kong’s Hang Seng, however, rose over 2 per cent, indicating selective buying in the region.
In the United States, Wall Street ended the previous session on a positive note. The S&P 500 gained 0.59 per cent, while the Nasdaq advanced 1.2 per cent, though concerns around technology shares and geopolitical risks continued to influence global market sentiment.