New Delhi [India], March 27 : Domestic equity benchmarks began the trading session on a weak note on Friday, tracking a sharp downturn in global markets driven by escalating geopolitical tensions and downward revisions of economic forecasts.
The BSE Sensex stood at 74,563.22 points, marking a decline of 710.23 points or 0.94 per cent at 9:16 am. Simultaneously, the NSE Nifty 50 traded at 23,085.15 points, down by 221.30 points or 0.95 per cent.
Both indices recorded significant losses in the opening minutes of trade as investors reacted to uncertainty surrounding international peace efforts. The initial drop in the benchmark indices erased previous gains as the focus shifted toward risk mitigation in a volatile international environment.
Ajay Bagga, Banking and Market Expert, attributed the downward trajectory to a lack of clarity regarding international stability and military movements. Bagga noted that "US markets were down as markets don't know the status of the peace proposals with continued attacks and differing versions of the on-ground reality from each of the principal actors."
He further highlighted that "there is a big event risk with US Marines reaching the Persian Gulf starting today," which added to the cautious environment.
Bagga explained that "Asian markets are largely down given the weekend uncertainty and the event risk of a US takeover of the Kharg island." This regional instability appeared to outweigh some of the temporary relief seen in energy costs earlier.
"Meantime, the 10 day extension provided by Trump led to slight dip in the traded price of oil futures," Bagga added.
On the domestic front, Bagga stated that "Indian markets will be opening negative with significant downgrades to the earnings and GDP number forecasts from major brokerages."
The broad-based selling reflected a cautious approach by market participants heading into the weekend. Investors continued to monitor the movements in the Persian Gulf and the potential for further escalations that could impact global trade routes.
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