Indian benchmark indices opened lower on Friday morning as rising crude oil prices, triggered by renewed friction in the Strait of Hormuz, weighed on market sentiment. The Sensex dropped over 400 points at the open to 78,516.08 before recovering slightly to trade around 78,709.63, down 245.13 points.
Similarly, the Nifty slipped below the 24,600 mark after opening at 24,538.90, before paring losses to trade near 24,596.05, down 39.95 points. The Indian stock markets began their day on a downward trend today morning due to increasing prices of crude oil, caused by growing tensions in the Strait of Hormuz region. The Sensex fell more than 400 points at the opening session to 78,516.08, while recovering a little bit to hover around 78,709.63, which is 245.13 points down. Likewise, the Nifty fell below 24,600 levels after the opening at 24,538.90 to trade around 24,596.05.
Sectoral performance was predominantly negative, though auto, FMCG, IT, realty, and oil and gas stocks managed gains. Broad market indicators showed a mixed trend. On the BSE, top performers included TCS, Tech Mahindra, HCL Tech, BEL, NTPC, and Infosys, whilst Bajaj Finance, Trent, Axis Bank, Asian Paints, and State Bank of India dragged on the index. This was also replicated in the Indian markets with significant gains in IT and energy sectors while losses recorded in steel and banking companies like Trent, Axis Bank, Kotak Bank, and Tata Steel.
On the commodity front, the Brent crude climbed above USD 83.40 per barrel, driven by concerns of shortages, which can pose a challenge to India as one of the largest consumers. The spot gold remained at about USD 4,265.38 per ounce, as a result of the safe-haven appeal due to regional tensions despite the possibility that sustained oil prices will compel higher interest rates from the central bank.
As per market watchers, there seems to be a tendency for stocks to be consolidating since investors will be analysing developments around geopolitics and awaiting important US jobs data expected at a later time in the day. The Nifty remained above its support level of 24,500 although according to technical analysts, breaking through 24,650 would have to be definitive for further upward momentum since significant resistance lies at 24,800.
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