Mumbai (Maharashtra) [India], March 12 (ANI): Indian stock markets opened sharply lower on Thursday as escalating tensions in West Asia and a steep rise in crude oil prices weighed heavily on investor sentiment.
The benchmark indices came under pressure after Iran’s Navy chief reportedly stated that vessels attempting to sail through the Strait of Hormuz would require Iran’s approval or risk being targeted, raising concerns about potential disruptions to global oil supplies.
The Nifty 50 index opened at 23,674.85, falling 192 points or 0.80 percent, while the BSE Sensex began the session at 76,369.65, down 494.06 points or 0.64 percent.
Market experts attributed the early losses to a global risk-off sentiment, rising crude oil prices, and continued foreign investor outflows.
Ajay Bagga, a banking and market expert, told ANI that foreign institutional investors are increasingly viewing India as a market to sell on rallies.
“For FIIs, India has turned into a sell-on-rally market. Elevated crude, a strong dollar, and trade war risks are pulling capital away, leaving every bounce vulnerable to global risk-off flows,” Bagga said.
He also noted that the global energy market has entered a phase of heightened risk due to ongoing geopolitical tensions.
“The global energy market has entered war-risk overdrive. Despite the IEA’s unprecedented release of 400 million barrels of emergency oil — including 172 million from the United States alone — markets understand that reserves cannot solve a ‘closed pipe’ problem. The Strait of Hormuz is effectively closed. Shipping traffic has declined by 70 percent, insurers have withdrawn protection and indemnity cover, and reports suggest naval mining has begun. The Gulf is now a no-go zone,” Bagga added.
Meanwhile, West Texas Intermediate (WTI) crude prices surged past $100 per barrel, raising concerns about inflationary pressures and global economic stability.
Sectoral indices on the National Stock Exchange witnessed broad-based selling pressure in early trade. Nifty Auto, PSU Banks, and Nifty Realty recorded the steepest declines, with all three sectors dropping more than 2 percent at the opening.
Other sectors also traded lower. Nifty FMCG declined 1.4 percent, Nifty IT slipped 0.43 percent, and Nifty Pharma fell 0.98 percent.
In the commodity markets, precious metals remained elevated amid global uncertainty. Gold was trading at around Rs 161,629 per 10 grams for 24 karat, while silver was priced at Rs 267,121 per kilogram.
Asian markets also witnessed significant selling pressure on Thursday. Japan’s Nikkei 225 index declined 2 percent to 53,832, Singapore’s Straits Times fell 0.80 percent to 4,825, and Hong Kong’s Hang Seng index dropped 1.49 percent to 25,508.
South Korea’s KOSPI index declined 1.34 percent to 5,534, while Taiwan’s Weighted index slipped 1.47 percent to 33,643.
In the United States, markets ended mixed on Wednesday. The S&P 500 declined 0.08 percent to close at 6,775, while the Nasdaq edged slightly higher, gaining 0.08 percent to end at 22,716. The Dow Jones Industrial Average fell 0.61 percent to close at 47,417. (ANI)
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