Markets Open Lower Amid West Asia Tensions, Oil Spike

The benchmark indices came under pressure after reports that Iran’s Navy Chief warned vessels sailing through the Strait of Hormuz would require Iran’s approval or risk being targeted, raising concerns about disruptions in global oil supply.

The Nifty 50 index opened at 23,674.85, declining 192 points or 0.80 per cent, while the BSE Sensex opened at 76,369.65, down 494.06 points or 0.64 per cent.

Market experts attributed the early losses to global risk-off sentiment, rising crude prices and continued foreign investor outflows.

Ajay Bagga, banking and market expert, told ANI, “For FIIs, India has turned into a sell-on-rally market. Elevated crude, a strong dollar and trade war risks are pulling capital away, leaving every bounce vulnerable to global risk-off flows.”

He added that the global energy market has entered a phase of heightened risk due to ongoing geopolitical tensions.

“The global energy market has entered war-risk overdrive. Despite the International Energy Agency releasing 400 million barrels of emergency oil — including 172 million from the United States — markets are clear-eyed that reserves cannot solve a ‘closed pipe’ problem. The Strait of Hormuz is effectively closed, shipping traffic is down 70 per cent and insurers have withdrawn protection and indemnity cover. Reports also suggest naval mining has begun, making the Gulf a no-go zone,” Bagga said.

Meanwhile, West Texas Intermediate crude prices surged past USD 100 per barrel, raising concerns about inflationary pressures and global economic stability.

Sectoral indices on the National Stock Exchange of India witnessed broad-based selling pressure during early trade. Nifty Auto, PSU Banks and Nifty Realty recorded the sharpest declines, with all three sectors falling more than 2 per cent at the opening.

Other sectors also traded lower, with Nifty FMCG declining 1.4 per cent, Nifty IT slipping 0.43 per cent and Nifty Pharma falling 0.98 per cent.

In commodity markets, precious metals remained elevated amid global uncertainty. Gold was trading at around Rs 1,61,629 per 10 grams for 24 karat, while silver was trading at Rs 2,67,121 per kilogram.

Asian markets also saw heavy selling pressure. Japan’s Nikkei 225 declined 2 per cent to 53,832, Singapore’s Straits Times Index fell 0.80 per cent to 4,825 and Hong Kong’s Hang Seng Index dropped 1.49 per cent to 25,508.

South Korea’s KOSPI declined 1.34 per cent to 5,534, while Taiwan’s Taiwan Weighted Index slipped 1.47 per cent to 33,643.

In the United States, markets ended mixed on Wednesday. The S&P 500 declined 0.08 per cent to close at 6,775, while the Nasdaq Composite ended marginally higher with a gain of 0.08 per cent at 22,716. The Dow Jones Industrial Average fell 0.61 per cent to close at 47,417.