Stock Market Today: The domestic equity market traded sharply lower in early trade on Thursday as Crude prices crossed $100 again amid an escalation in geopolitical tension due to uncertainty around peace talks between the US and Iran to end the war in the Middle East.
At the time of writing, the BSE Sensex was trading at 78,077.77, down 438.72 points or 0.56 per cent. NSE's Nifty50 was quoted at 24,280.95, down 97.15 points or 0.40 per cent. Weak global cues and persistent foreign fund outflow also dragged the sentiment. Meanwhile, Brent crude, the global oil benchmark, was trading above the $100 per barrel level. At the time of writing, Brent Crude was at USD 103.3 per barrel.
In early trade, the 30-share BSE index tumbled 532.83 points to 77,983.66, while Nifty plummeted 175.75 points to 24,202.35.
"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 $103, there is an increasing risk to global growth in general and higher risk to India’s macros in particular. If Brent crude remains at an average of $100 for many months, India’s growth and corporate earnings will take a hit. The market has not discounted this yet," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
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From the 30 shares Sensex basket, Tech Mahindra, Indigo, Eternal, Asian Paints, Mahindra & Mahindra, and Infosys were among the major laggards. Sun Pharma and Power Grid were trading higher in the opening trade.
Foreign institutional investors sold equities worth Rs 2,078.36 crore on Wednesday, according to exchange data.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Cheng index were trading lower.
"Indian equity markets have opened on a negative note, extending recent weakness, as rising geopolitical tensions continue to weigh on investor sentiment. The gap-down start reflects persistent risk aversion, with selling pressure visible across broader markets in early trade. The sharp rise in crude oil prices above $103 per barrel remains the key concern, intensifying fears around inflation, India’s import bill, and overall macroeconomic balance, thereby triggering broad-based selling," said Ponmudi R, CEO of Enrich Money.