Indian equity benchmarks Nifty 50 and BSE Sensex opened sharply lower on Thursday, tracking weak global cues and a surge in crude oil prices amid continued tensions around the Strait of Hormuz. Early trade saw heavy selling pressure across sectors, dragging the indices deep into the red.
As of 10:16 AM, the Nifty 50 stood at 24,276.45, down 101.65 points or 0.42%, while the Sensex was at 78,032.89, down 489.04 points. The sharp fall follows Wednesday’s close, where the Nifty ended at 24,378, down 101.65 points, while the Sensex settled at 78,032.89, down 489.04 points, snapping a three-session winning streak.
Market sentiment remained cautious as rising global crude oil prices continued to worry investors despite a temporary US-Iran ceasefire. Higher oil prices typically raise concerns around inflation and India’s import bill, which in turn impacts equity markets.
Sectorally, financial stocks bore the brunt of the sell-off, with indices like the Nifty Bank, Nifty Private Bank, and Nifty Financial Services underperforming in early trade. On the other hand, the Nifty Pharma index showed resilience and emerged as a relative outperformer amid the broader market weakness.
A notable trend in recent sessions has been the continued strength in the broader market. Midcap and smallcap stocks have been outperforming, supported by selective buying from foreign institutional investors (FIIs). Despite volatility in frontline indices, this segment has not witnessed significant selling pressure, and analysts expect this trend to persist in the near term.
Investors are also closely watching the IT sector, with Infosys set to announce its earnings later in the day. Market participants will further react to earnings from companies such as Trent, LTTS, Bharat Coking Coal, and Tata Communications, which could drive stock-specific movements.
Overall, markets remain volatile, with global cues, crude oil price movements, and ongoing earnings announcements likely to dictate the near-term direction of Dalal Street.