Indian benchmark indices Sensex and Nifty experienced declines in early trade as elevated crude oil prices, fuelled by the ongoing geopolitical uncertainty in the Strait of Hormuz, continued to weigh heavily on investor sentiment.
Benchmark indices Sensex and Nifty declined in early trade on Thursday as crude oil prices remained elevated amid the unresolved situation in the Strait of Hormuz.
The 30-share BSE Sensex declined 172.48 points to 77,786.41 in early trade.
The 50-share NSE Nifty was down 90.35 points to 24,343.50.
From the Sensex pack, Titan, UltraTech Cement, Reliance Industries, ICICI Bank, Kotak Mahindra Bank and Infosys were among the major laggards.
InterGlobe Aviation, Tech Mahindra, Eternal and NTPC were among the winners.
"Elevated crude oil prices, driven by the continuing US-Iran standoff over the Strait of Hormuz, remain the primary overhang for domestic equities and are likely to keep investor sentiment measured," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
"Although Brent crude has eased modestly to below $89 per barrel, the unresolved situation in the Strait of Hormuz continues to keep the geopolitical risk premium in energy markets elevated," Hariselvan Radhakrishnan, founder & CEO of HST Wealth, a research analyst firm, said.
"Global sentiment turned positive overnight after a benign US inflation print eased concerns over further Federal Reserve tightening, triggering a relief rally across Asian markets this morning, led by a spectacular near 5 per cent surge in South Korea's Kospi," he added.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading higher.
US markets ended mostly higher on Wednesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,002.50 crore on Wednesday, according to exchange data.