- Indian markets opened cautiously, tracking renewed US-Iran tensions.
- US retaliatory strikes, sanctions heightened global crude oil fears.
- Asian, US markets fell; crude oil prices surged significantly.
Indian equity markets opened on a cautious note on Wednesday as renewed geopolitical tensions in West Asia weighed on global sentiment and pushed crude oil prices sharply higher.
The BSE Sensex bled more than 350 points and tested 77,800, while the NSE Nifty50 breached 24,300, taking a hit of nearly 122 points, as of 9:15 AM.
GIFT Nifty Signals Gap-Down Opening
The GIFT Nifty indicated that domestic equities could begin the session on a softer footing.
The futures contract was trading at 24,230, down 211 points, suggesting a gap-down opening for the Nifty50 as traders factored in rising geopolitical risks and stronger crude oil prices.
In the pre-open session at around 9:02 AM, the Sensex was down 74.53 points, or 0.10 per cent, at 78,106.19, while the Nifty50 slipped 25.10 points, or 0.10 per cent, to 24,373.60.
Although the decline in the pre-open session remained modest, derivatives signals pointed to a weaker start for the benchmark indices as investors reacted to fresh developments involving the United States and Iran.
Fresh US-Iran Escalation Weighs On Markets
Investor sentiment turned cautious after tensions between the United States and Iran flared up again.
According to reports, the US launched retaliatory strikes against Iran and reinstated sanctions restricting Tehran’s global crude oil sales. The military action followed attacks by Iran on three commercial vessels travelling through the US Navy-protected shipping corridor in the Strait of Hormuz.
The latest developments have raised concerns over global energy supplies and added to uncertainty across financial markets.
Also Read : E20 Fuel Row Deepens: Govt May Delay E25 Petrol Rollout Amid Mileage, Engine Concerns
Asian Markets Trade Lower
Most major Asia-Pacific equity markets slipped in early trade as investors assessed the geopolitical situation.
Japan’s Nikkei 225 declined around 0.5 per cent, while South Korea’s Kospi fell nearly 0.8 per cent. The weakness across regional markets reflected growing risk aversion following the latest developments in West Asia.
Wall Street Ends In The Red
US markets closed lower overnight as investors trimmed exposure to risk assets.
The Dow Jones Industrial Average and the S&P 500 ended with moderate losses, while the technology-heavy Nasdaq Composite declined more than 1 per cent, reflecting weakness in growth stocks.
Crude Oil Surges Above $75
Oil prices climbed sharply after the US military action and the renewed sanctions on Iranian crude exports heightened concerns over supply disruptions.
Brent crude futures rose around 3 per cent, with the July contract trading at approximately $75.78 per barrel during early Asian trade.
Higher crude prices remain a key concern for India as they can increase inflationary pressures, widen the current account deficit and weigh on corporate earnings.
Gold And Silver Ease
Despite the geopolitical uncertainty, precious metals witnessed some profit-booking.
Gold futures declined nearly 1 per cent, while silver futures fell close to 2 per cent in early trade.
Also Read : Are You Using Your Credit Card For Convenience Or Just To Get Through The Month?
