Mumbai (Maharashtra) [India], May 20 : The stock markets opened with heavy selling pressure on Wednesday as the Indian rupee hit a fresh record low against the US dollar, while Brent crude oil prices continued to remain elevated amid global geopolitical tensions.
The Nifty 50 index opened at 23,457.25, declining by 160.75 points or 0.68 per cent, while the BSE Sensex opened at 74,806.49, down by 394.36 points or 0.52 per cent.
Market experts said rising crude oil prices, weakening currency and concerns over inflation are weighing heavily on investor sentiment.
Ajay Bagga, banking and market expert, told ANI, "Indian markets are getting slammed by higher oil prices, a weakening balance of trade and current account deficit metric as well as a sharply depreciating rupee."
He further said, "Wednesday is pointing to a weak open for Indian stocks with bond yields rising amid forecasts of a below normal monsoon season, which could impact agricultural output and rural consumption demand in the second half of the year."
Bagga also highlighted that global markets remain under pressure due to continued energy supply chain disruptions caused by the Iran-US war.
"Global stock markets are muted on the back of continued energy supply chain disruptions due to the Iran-US war. Bond yields across US, Japan, Europe, UK and India are rising in reaction to rising inflation and in anticipation of inflation becoming anchored," he said.
He added that Nvidia results will be watched closely for pointers to the strength of the momentum AI trade, which has been the bright spot in otherwise challenged markets.
The Indian rupee opened at a new low of 96.88 against the US dollar, while Brent crude oil prices remained elevated at USD 110 per barrel.
In the broader market, almost all sectoral indices on the NSE traded in the red during early trade. Nifty Auto declined by 1.30 per cent, Nifty FMCG fell 0.90 per cent, Nifty Media tanked 1.96 per cent, Nifty Metal slipped 0.81 per cent, while Nifty PSU Bank lost 1.27 per cent. Nifty Private Bank was down by 0.92 per cent, Nifty Realty declined 1.78 per cent and Nifty Consumer Durables fell 0.80 per cent.
Meanwhile, several major companies are scheduled to announce their fourth-quarter earnings on Wednesday, including Grasim Industries, Samvardhana Motherson International, Apollo Hospitals Enterprise, Bosch, Jubilant FoodWorks, Metro Brands, Honeywell Automation India, IRB Infrastructure Developers, Eris Lifesciences and Ola Electric Mobility.
Other Asian markets also traded under pressure. Japan's Nikkei declined 1.59 per cent to 59,590 level, Singapore's Straits Times was down 0.82 per cent at 5,031, Hong Kong's Hang Seng declined 0.65 per cent to 25,637 level, while South Korea's KOSPI index fell 2.42 per cent to 7,095 level.
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