- Indian benchmark indices closed lower Thursday tracking global market weakness.
- Crude oil surge, US-Iran tensions, foreign outflows impacted markets.
- Global market weakness, US inflation also contributed to the decline.
The Indian benchmark indices ended lower on Thursday as the Sensex fell 150 points to settle at 73,832 and the Nifty declined 53 points to close at 23,161 at 3:30 PM>
Previously, during the early morning session, the Sensex declined over 358 points to open at 73,624, while the Nifty dropped 117 points to open trade at 23,098 at 9:15 AM.
Stock Market Opening Today
Benchmark equity indices Sensex and Nifty opened lower on Thursday, tracking weakness across global markets and a sharp rise in crude oil prices amid escalating tensions between the United States and Iran.
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Market sentiment was also affected by continued foreign fund outflows and a spike in US inflation, analysts said.
Crude Oil Surge Raises Concerns
Brent crude, the global oil benchmark, climbed 1.70 per cent to USD 94.68 per barrel, adding to concerns about inflation and economic stability.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,124.98 crore on Wednesday.
Geopolitical Risks Back In Focus
Fresh military action by the United States against Iranian targets has renewed concerns over stability in the Middle East.
“Fresh military action by the United States against Iranian targets has reignited concerns over the stability of the Middle East, raising fears that recent diplomatic efforts may be losing momentum and increasing the risk of a broader regional conflict,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
He added that the latest US inflation data, while largely in line with expectations, showed consumer prices rising to their highest level in three years.
Asian Markets Follow Global Weakness
Major Asian markets were trading lower on Thursday. South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index all quoted in negative territory.
The weak trend followed a sharp sell-off on Wall Street overnight.
Wall Street Witnesses Sharp Correction
US markets ended significantly lower on Wednesday, with the Dow Jones Industrial Average falling more than 950 points.
“The weakness was broad-based as investors moved away from risk assets amid fears that escalating geopolitical tensions could disrupt energy markets and keep inflationary pressures elevated,” said Hariprasad K, Research Analyst and Founder of Livelong Wealth.
“Asian markets are reflecting a similar sentiment this morning,” he added.
India Faces Crude Oil Challenge
For Indian markets, analysts said rising crude oil prices remain the biggest concern.
“Rising oil prices not only threaten India’s inflation trajectory but also add pressure on the fiscal balance, corporate margins and the rupee,” Hariprasad said.
Previous Session
On Wednesday, the Sensex erased most of its intraday gains and closed 64.42 points, or 0.09 per cent, higher at 73,983.18.
The Nifty, however, ended 27.15 points, or 0.12 per cent lower at 23,214.95.
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