Indian benchmark indices opened sharply lower on Thursday as rising crude oil prices weighed on investor sentiment. The sell-off came after oil prices climbed above $100 a barrel following Iranian President Masoud Pezeshkian’s remarks at the United Nations General Assembly (UNGA) that Tehran would not surrender to US pressure.
At 9:16 am, the BSE Sensex was trading at 74,240.87, down around 600 points or 0.79 per cent. Only Tech Mahindra and Sun Pharma were trading in the green among the 30 Sensex constituents. By 9:50 am, the benchmark had extended its decline to more than 600 points.
Crude prices rise above $102
Brent crude was around $102.5 a barrel on Thursday after rising four per cent in the previous session.
Iran and the US remain divided over how to end their war, although diplomacy must continue, a senior Iranian official told Reuters on Wednesday. The developments have added to concerns around oil supplies and kept crude prices elevated.
Higher crude prices can weigh on markets as investors assess their potential impact on inflation and corporate costs.
NSE listing draws market attention
While the broader market remained under pressure, the debut of the National Stock Exchange (NSE) was another major focus for investors.
NSE, India's largest stock exchange, is set to list its shares on the BSE on Thursday. Its shares will also be available for trading on the Metropolitan Stock Exchange of India (MSEI).
Analysts expect the stock to make a modest debut gain of around two-three per cent as investors assess the exchange's dominant position against slowing activity in the derivatives segment.
On the BSE website, NSE shares were shown at Rs 1,735 in the pre-open session at 9:22 am. The IPO had a price band of Rs 1,700-Rs 1,785, with Rs 1,785 being the upper end.
GIFT Nifty futures stood at 23,270 points at 8:02 am, pointing to a weak opening for the Nifty 50.
Markets had gained on Wednesday
The decline followed a stronger session on Wednesday. The Sensex rose 299.17 points, or 0.40 per cent, to close at 74,828.25, while the Nifty gained 117.80 points, or 0.50 per cent, to end at 23,446.80.
Tata Steel, Bajaj Finance, ITC, UltraTech Cement, Power Grid and Larsen & Toubro were among the major gainers, while HCLTech, Infosys, TCS, Titan and Mahindra & Mahindra ended lower.