Benchmark stock market indices opened lower on Tuesday, as elevated crude oil prices and a weak rupee weighed on investor sentiment, even as markets tracked ongoing March-quarter earnings.
The BSE Sensex was down 170.40 points, or 0.22%, at 77,099.00 at 9:35 am, while the Nifty 50 fell 65.85 points, or 0.27%, to 24,053.45 as of 9:35 am.
Markets had indicated a weak start earlier, with the Nifty slipping in early trade as global cues remained soft and geopolitical tensions in West Asia continued to keep investors cautious.
Selling pressure was visible across sectors, with 11 out of 16 sectoral indices trading in the red. Broader markets also saw mild declines, with midcap and smallcap stocks slipping in early trade.
Among Sensex stocks, gains were limited. Bharti Airtel rose 0.73%, while Reliance Industries gained 0.65%. Titan, BEL and Infosys also traded in the green with modest gains. ITC and Power Grid were marginally higher.
However, most stocks were under pressure. Bajaj Finance fell 1.28%, Bajaj Finserv declined 1.00%, ICICI Bank dropped 0.98%, Larsen & Toubro slipped 0.96% and Sun Pharma fell 0.94%. Tata Steel, HDFC Bank, Kotak Bank and Maruti Suzuki also traded lower.
OIL PRICES REMAIN A KEY CONCERN
Crude oil prices continue to be a major concern for markets. Brent crude, which surged to an intraday high of $115.3 per barrel on Monday amid escalating tensions in the Middle East, remained elevated around $113 levels despite some easing.
Latest data shows Brent crude at $113.24 per barrel, down slightly by 1.05%, while WTI crude was at $104.41, down 1.89%. Even with this dip, prices remain high and continue to pose risks for India, which depends heavily on oil imports.
Higher crude prices tend to push up inflation and increase input costs for companies, which can affect earnings and economic growth.
WEAK RUPEE ADDS TO PRESSURE
The rupee also remains under pressure, hitting an all-time low of around 95.23 against the US dollar. A weaker rupee makes imports costlier and can reduce returns for foreign investors, leading to cautious flows.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the market’s direction will be influenced more by global factors than domestic developments.
“The sentimental boost provided by the BJP’s electoral victory in Bengal will not last. The market trend will be guided by the developments in West Asia particularly in the Strait of Hormuz. The resumption of hostilities in the Hormuz region and Brent crude again spiking to around $113 are headwinds for the market,” he added.
Investors will continue to track developments in the Middle East, especially around the Strait of Hormuz, as any disruption to oil supply can impact markets further.
At the same time, ongoing corporate earnings will drive stock-specific movements, with several companies set to report results in the coming sessions.
“The US-10-year bond yield rising to 4.44% and rupee sliding to 95.23 level are unfavourable from the FPI flows perspective. Yesterday’s cash market buy by the FIIs is unlikely to be the beginning of a trend. In the near-term the market will respond to Q4 results and management commentary,” said Vijaykumar.
Overall, markets remain under pressure at the start of the day, with global risks and macro concerns outweighing domestic positives.
