Benchmark equity indices Sensex and Nifty opened lower on Wednesday as rising crude oil prices and global geopolitical concerns dampened investor sentiment.
The 30-share BSE Sensex opened lower by 109 points. The index further declined 370 points, or 0.4%, to 77,784 points. The NSE Nifty fell up to 114 points.
Shares of Bharti Airtel, Mahindra & Mahindra, UltraTech Cement, Adani Ports, Titan and Bajaj Finance were among the major laggards in the Sensex pack. State Bank of India, Tech Mahindra, Axis Bank and Asian Paints were among the stocks trading higher.
Crude oil surge weighs on market sentiment
Brent crude, the global oil benchmark, rose 1.24% to $90.01 per barrel, adding pressure on equity markets.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market was moving sideways despite expectations of an upward breakout. He attributed the lack of momentum to the rise in Brent crude prices and continued uncertainty over US-Iran tensions.
He said recent developments, including a US military attack on a Panama-flagged container ship, have added to geopolitical concerns.
Global cues remain mixed for investors
Asian markets showed mixed trends on Wednesday. South Korea’s KOSPI surged 4.59%, while Japan’s Nikkei 225 and Shanghai’s SSE Composite index also traded higher. Hong Kong’s Hang Seng index moved lower. US markets ended the previous session on a weak note.
Ponmudi R, CEO of Enrich Money, said global cues remained subdued as investors adopted a cautious approach ahead of US consumer inflation data. He added that uncertainty over Washington and Tehran’s discussions regarding the reopening of the Strait of Hormuz continued to affect market sentiment.
Foreign Institutional Investors (FIIs) bought equities worth ₹258.55 crore on Tuesday, according to exchange data.
In the previous session, the Sensex declined 388.19 points, or 0.49%, to close at 78,154.25. The Nifty fell 112.10 points, or 0.46%, to settle at 24,471.70.