Sensex, Nifty open lower as Middle East tensions push crude above $92
Indian equity benchmarks opened lower on Wednesday as a fresh surge in crude oil prices, escalating tensions in West Asia and concerns over possible US tariffs on pharmaceutical imports weighed on investor sentiment.
Mumbai: Indian equity benchmarks opened lower on Wednesday as a fresh surge in crude oil prices, escalating tensions in West Asia and concerns over possible US tariffs on pharmaceutical imports weighed on investor sentiment. The 30-share BSE Sensex opened 85. 16 points, or 0. 11 per cent, lower at 77,384. 95, against its previous close of 77,470. 11. The NSE Nifty 50 began the session at 24,150. 45, down 37. 25 points, or 0. 15 per cent, from 24,187. 70. Selling intensified immediately after the opening bell. By around 9. 30 am, the Sensex had fallen more than 350 points to 77,118, while the Nifty declined 96 points to 24,091. The broader market also came under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling up to 0. 5 per cent. The India VIX, which reflects expected market volatility, rose about 3 per cent to 12. 98. The decline came despite overnight gains on Wall Street and a positive trend across several Asian markets. Domestic investors remained cautious after Brent crude climbed above $92 per barrel amid renewed military exchanges between the US and Iran and growing concerns over disruption to oil shipments through the Red Sea and the Strait of Hormuz. Higher crude prices are negative for India as the country depends heavily on imported oil. A sustained increase can widen the import bill, put pressure on inflation and weaken the rupee. Pharmaceutical stocks were among the worst hit after fresh US tariff threats against imported medicines. The Nifty Pharma index fell more than 1 per cent in early trade. Banking and information technology stocks also contributed to the decline in the benchmark indices. Among the Nifty 50 stocks, InterGlobe Aviation was the biggest loser, falling about 3 per cent. Cipla declined 1. 83 per cent, while State Bank of India slipped 1. 55 per cent. Max Healthcare and Dr Reddy’s Laboratories were down around 1. 32 per cent each. Bajaj Auto bucked the weak trend and gained 3. 48 per cent. ONGC rose 0. 97 per cent, Nestle India advanced 0. 86 per cent, Titan gained 0. 51 per cent and Eternal was up 0. 23 per cent in early trade. The market breadth remained negative, with 1,496 stocks declining on the NSE against 906 advances, while 102 stocks were unchanged. Meanwhile, the rupee opened 10 paise lower at 96. 34 against the US dollar, compared with Tuesday’s close of 96. 24. The domestic currency was pressured by the rise in crude oil prices and increased demand for the dollar from importers.