West Asia Tensions Hit Dalal Street; Sensex, Nifty Open in Red

Indian equity markets opened sharply lower on Friday as escalating tensions in West Asia triggered a fresh surge in crude oil prices. The worsening conflict involving Saudi Arabia and Houthi rebels added to investor concerns, with rising oil prices posing a potential risk to inflation and the broader Indian economy. The Sensex plunged nearly 700 points in early trade. Around 9:30 a.m., the Sensex was down 622 points at 74,268, while the Nifty declined 221 points to 23,256. The rupee was trading at 95.79 against the US dollar. Among Nifty stocks, ONGC, Tech Mahindra, TCS and Bharti Airtel were among the gainers, while Hindalco, Tata Steel, Bajaj Finance, JSW Steel and Shriram Finance were under pressure.

Crude oil prices remained the key concern for investors. Even as the Iran-US conflict continues, renewed tensions involving Saudi Arabia and the Houthis have added pressure to global oil markets. Brent crude rose to $108.77 a barrel, its highest level in four months, and has gained more than 12% in a week. The sharp rise in crude could increase India’s import bill and put pressure on inflation, the rupee and corporate profitability. Weakness in US markets on Thursday and continued losses across Asian markets also weighed on domestic investor sentiment.