Sensex, Nifty opens in red as crude oil crosses USD 100 amid global tensions

Nifty and Sensex opens in red. (File pic)

After experiencing a significant fall on Wednesday, equity benchmark indices Sensex and Nifty tumbled during the early trade on Thursday as well. The major reason behind the downward trajectory of the market indices on April 23 is the sudden increase in crude oil prices that again breached the USD 100 per barrel mark.

Nifty falls by 175.75 points

The 30-share BSE Sensex on Thursday tumbled 532.83 points to 77,983.66 in opening trade. The 50-share NSE Nifty dropped 175.75 points to 24,202.35.

Top gainers and losers

From the 30-Sensex firms, Tech Mahindra, Eternal, InterGlobe Aviation, Mahindra & Mahindra, Asian Paints and Infosys were among the major laggards. Whereas Sun Pharma and Power Grid were the only winners.

Global markets

Along with the Indian market, various Asian markets, including South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index, also traded in red. Talking about global markets, Brent crude, the global oil benchmark, also traded 1.36 per cent higher at USD 103.3 per barrel.

Indian equity indices lost their three-day winning streak on Wednesday

However, earlier on Wednesday, Indian benchmark indices snapped their three-day gaining streak and ended lower, with the Nifty slipping below the 24,400 mark on 22nd April. The decline was driven by uncertainty surrounding geopolitical developments that led to a rise in crude oil prices.

On the other hand, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,078.36, according to exchange data.

Expert opinions

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, while talking to the media on Thursday, said, "With total uncertainty becoming the new normal, there is no clarity on the near-term direction of the market. With the duration of the war going beyond everyone's initial expectations and the price of Brent crude bouncing back to USD 103, there is increasing risk to global growth in general and higher risk to India's macros in particular."

Hariprasad K, Research Analyst and Founder at Livelong Wealth, said, "The primary overhang continues to be geopolitical developments in the Middle East. Recent escalation in the USA-Iran situation, including reports of naval confrontations and renewed warnings of potential strikes, has significantly increased uncertainty. The risk surrounding the Strait of Hormuz, a critical global energy corridor, has pushed Brent crude prices above the USD 100 per barrel mark," as per PTI.

(With inputs from PTI)