Indian equity markets opened on a cautious and negative note on Thursday, retreating after a sharp rally in the previous session, as rising geopolitical tensions and surging crude oil prices dampened investor sentiment.
The benchmark BSE Sensex declined 560 points or 0.72 per cent to trade at 77,003 in early deals, hitting an intra-day low. Similarly, the Nifty 50 slipped 182 points or 0.75 per cent to 23,815, also touching its dayโs low.
Market sentiment was weighed down by reports of escalating tensions in the Middle East, particularly following an attack by Israel on Hezbollah in Lebanon, raising concerns over potential disruption in the Strait of Hormuz โ a critical global oil supply route.
Sector-wise, IT, realty, banking, and auto stocks led the decline, falling up to 1 per cent. Among the top laggards on the Nifty were Infosys, HCL Technologies, Tech Mahindra, Axis Bank, Bajaj Finance, InterGlobe Aviation, Mahindra & Mahindra, and Shriram Finance.
Analysts advised investors to remain cautious amid the prevailing uncertainty. They suggested adopting a โbuy on dipsโ strategy near key support levels while avoiding aggressive long positions at elevated valuations.
Market experts also highlighted the continued divergence in institutional flows. On Wednesday, foreign institutional investors (FIIs) remained net sellers, offloading equities worth approximately โน2,812 crore. In contrast, domestic institutional investors (DIIs) provided support with net inflows of around โน4,168 crore.
Volatility indicators offered some relief, with India VIX cooling to around 19.69, suggesting relatively lower market volatility. However, analysts cautioned that intraday swings could persist given the uncertain global backdrop.
Meanwhile, crude oil prices surged sharply amid supply concerns. Brent crude rose over 3.3 per cent to $97.89 per barrel, while US West Texas Intermediate (WTI) climbed 4.2 per cent to $98.38 per barrel.
Global cues remained mixed. Asian markets traded lower, with Japanโs Nikkei, Hong Kongโs Hang Seng, and South Koreaโs KOSPI indices declining up to 1 per cent. However, US markets ended on a positive note in the previous session, with major Wall Street indices closing over 2 per cent higher.
Overall, the Indian markets are expected to remain sensitive to geopolitical developments and crude oil price movements in the near term.
