Indian benchmark stock indices opened lower on Thursday as the BSE Sensex fell by more than 100 points, while the NSE Nifty slipped below the 23,400 mark during volatile trading.
Among individual stocks, Rajesh Exports, Tata Steel and ONGC were among the notable gainers, supported by sector-specific buying and strength in commodity-linked counters. On the other hand, Infosys, HCLTech and Tech Mahindra were among the major laggards, dragging the indices lower amid weakness in information technology stocks.
Higher crude oil prices are a major concern for India, which imports most of its energy needs. Rising oil costs can increase inflationary pressures and impact corporate earnings. Brent crude remained elevated, keeping investors on edge. At the same time, the Indian rupee came under pressure against the US dollar, adding to market worries.
Foreign institutional investors (FIIs) continued to remain cautious, with persistent selling activity affecting market sentiment. Traders also preferred to stay on the sidelines ahead of the RBI’s policy announcement, where the central bank is expected to provide guidance on interest rates, inflation, liquidity and economic growth. Most economists expect the RBI to keep the repo rate unchanged.
Sector-wise, weakness was seen in several heavyweight stocks, particularly in information technology and other rate-sensitive sectors. However, broader markets showed some resilience, with select mid-cap and small-cap stocks attracting buying interest.
Market sentiment remained weak as concerns over the escalating conflict between the United States and Iran continued to affect global financial markets. Investors feared that further tensions could disrupt oil supplies and push crude oil prices higher.
Global markets also remained under pressure as investors shifted towards safer assets amid uncertainty surrounding the Middle East conflict.