Indian benchmark equity indices, Sensex and Nifty, experienced a downturn in early trade as surging Brent crude oil prices, driven by geopolitical tensions, weighed heavily on investor sentiment.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian benchmark equity indices, Sensex and Nifty, saw declines in early trade, with the Sensex dipping 35.99 points and the Nifty skidding 31.15 points.
- A significant factor contributing to the market decline was the strengthening Brent crude oil, which traded 1.24 per cent higher at $90.01 per barrel.
- Ongoing US-Iran skirmishes and the continuing stalemate over the reopening of the Strait of Hormuz are contributing to the rise in crude oil prices and investor caution.
- Major laggards in the Sensex pack included Bharti Airtel, Mahindra & Mahindra, UltraTech Cement, Adani Ports, Titan, and Bajaj Finance.
- Foreign Institutional Investors (FIIs) remained net buyers, purchasing equities worth Rs 258.55 crore on Tuesday, despite the overall market downturn.
Benchmark equity indices Sensex and Nifty drifted lower in early trade on Wednesday as higher crude oil prices weighed on investors' sentiment.
The 30-share BSE Sensex dipped 35.99 points to 78,097.31 in early trade.
The 50-share NSE Nifty skidded 31.15 points to 24,444.55.
Further in the trade, the BSE benchmark dropped 211.37 points to 77,953.66, and the Nifty traded 65.10 points down at 24,411.15.
Winners and Losers on Dalal Street
From the Sensex pack, Bharti Airtel, Mahindra & Mahindra, UltraTech Cement, Adani Ports, Titan and Bajaj Finance were among the major laggards.
State Bank of India, Tech Mahindra, Axis Bank and Asian Paints were among the winners.
Expert Opinion
"The market is defying a breakout on the upside and is moving sideways. The principal factor restraining a rally is the strengthening Brent crude which has again moved above $89 level.
"The off and on in the US-Iran skirmishes continues with the latest attack by US military on a Panama-flagged container ship," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
"Overnight cues from Wall Street were subdued, with the S&P 500 and Dow Jones Industrial Average each declining about 0.3 per cent, while the Nasdaq Composite slipped 0.6 per cent, as investors turned cautious ahead of Wednesday's US consumer price inflation data and amid the continuing stalemate between Washington and Tehran over the reopening of the Strait of Hormuz," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Asian and US Market Performance
In Asian markets, South Korea's KOSPI jumped 4.59 per cent.
Japan's Nikkei 225 and Shanghai's SSE Composite index also traded higher, while Hong Kong's Hang Seng index quoted lower.
US markets ended lower on Tuesday.
Brent crude, the global oil benchmark, traded 1.24 per cent higher at $90.01 per barrel.Foreign Institutional Investors (FIIs) bought equities worth Rs 258.55 crore on Tuesday, according to exchange data.
