Sensex, Nifty open lower amid surge in crude oil prices, weak global cues

MUMBAI — Domestic equity benchmark indices opened lower on Tuesday, tracking weak global markets after a sharp rebound in crude oil prices to the $85-a-barrel mark amid escalating tensions in the Middle East.

Sensex opened 344.06 points or 0.44 per cent lower at 77,272.34, while Nifty fell over 100 points or 0.59 per cent to 24,068.00 at the opening bell.

Among the sectoral indices, financial and auto stocks led the decline.

Nifty Financial Services Ex-Bank slipped 1.12 per cent, followed by Nifty Auto, which fell 1 per cent. Nifty Private Bank, Realty and Media also traded lower, declining up to 0.78 per cent.

In contrast, metal and healthcare stocks bucked the weak market trend. Nifty Metal gained 0.38 per cent, while Nifty Healthcare advanced 0.14 per cent.

Among the Nifty 50 stocks, Shriram Finance, InterGlobe Aviation (IndiGo), Bajaj Finance, Larsen & Toubro, HCLTech, Mahindra & Mahindra, Kotak Mahindra Bank and Bajaj Finserv were the top losers in early trade.

"The spike in crude oil prices due to geopolitical tensions is likely to keep investors cautious. While domestic fundamentals remain supportive, sustained strength in oil prices could weigh on sectors dependent on fuel costs," market experts said.

They added that for the Nifty, the 24,300 level on the upside and 24,000 on the downside remain crucial. A decisive breakout above 24,300 could trigger an upmove towards 24,530, the previous swing high, while a break below 24,000 may lead to a retest of the 23,800 support zone.

Experts further said the selloff in global markets followed the US military's third consecutive night of strikes on Iran after US President Donald Trump reinstated a naval blockade and proposed a 20 per cent fee.

International benchmark Brent crude rose 2.82 per cent to $85.65 a barrel, while US West Texas Intermediate (WTI) crude gained nearly 3 per cent to $80.42 a barrel.

Asian markets traded largely lower, with Japan's Nikkei declining around 1 per cent. Hong Kong's Hang Seng and South Korea's Kospi were also trading in the red.