Indian equity markets closed lower on Thursday after a volatile trading session, with investors reacting to escalating tensions in West Asia and a sharp rise in global crude oil prices.
The BSE Sensex ended 151 points lower, while the NSE Nifty closed below the 23,200 mark. Markets opened sharply lower after reports of fresh US military strikes on Iran raised fears of disruptions to global energy supplies and pushed Brent crude oil prices above $95 per barrel.
Both benchmark indices initially declined nearly 0.6% in early trade. However, buying in select banking and healthcare stocks helped the market recover a significant portion of its losses during the day. At one point, the Sensex had rebounded more than 600 points from its intraday low before losing momentum in the final hours of trading.
Technology stocks were among the biggest losers. Major IT companies, including Infosys, came under selling pressure amid concerns that rising US inflation and the possibility of further interest rate hikes could affect technology spending. Auto, real estate, cement and PSU bank stocks also traded weak, while banking, private financial, pharmaceutical and healthcare shares showed relative strength.
Investor sentiment remained cautious as markets assessed the impact of higher oil prices on inflation and economic growth. India, one of the world’s largest crude oil importers, could face increased import costs if prices remain elevated. The Indian rupee weakened during the session, while demand for government bonds also softened as traders factored in inflationary risks.
Global markets reflected a similar risk-off mood. Asian equities opened lower following the latest developments in the US-Iran conflict, while US stock futures also declined. Investors are increasingly worried that prolonged geopolitical tensions could trigger sustained energy price shocks and force central banks around the world to keep interest rates higher for longer.
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