Indian equity markets opened sharply lower on Thursday, tracking weak global cues as escalating geopolitical tensions in the Middle East triggered a surge in crude oil prices.
Sensex plunged 1,953 points or 2.55 per cent to 74,750, while Nifty also witnessed heavy selling pressure, declining 580 points or about 2.4 per cent, before recovering a bit in early trade.
Among stocks, HDFC Bank, Shriram Finance, Larsen & Toubro (L&T), TMPV, Axis Bank, HDFC Life and IndiGo plunged up to 4 per cent in morning trade.
Across sectors, broad-based selling was witnessed, with financials and auto stocks leading the decline. The Nifty Private Bank index fell over 3 per cent, while Nifty Financial Services, Nifty Auto and Realty indices declined more than 2 per cent each.
The sharp fall comes amid a spike in crude oil prices, with Brent crude futures jumping nearly 5 per cent to $112.83 per barrel, close to its all-time high of $112.87. Meanwhile, WTI crude futures were trading at $100.02 per barrel.
“Technically, immediate support for Nifty is placed in the 23,250–23,150 range, while resistance is seen around 23,900–23,950. The RSI at 37.04 indicates early signs of recovery from oversold levels, but a sustained move above resistance is needed to confirm momentum,” said Hitesh Tailor, Research Analyst at Choice Broking.
The rise in oil prices followed heightened tensions after Iran launched a missile attack on Qatar’s Ras Laffan gas facility, one of the world’s largest LNG hubs.
The situation has escalated further after coordinated US-Israel airstrikes targeted Iran’s South Pars gas field and oil infrastructure in Asaluyeh, a key energy hub.
The sharp fall in early trading wiped out most of the gains recorded earlier this week, when both indices had risen around 3 per cent, with the Sensex gaining over 2,000 points and the Nifty about 600 points.
Meanwhile, Asian markets also experienced significant declines, with major indices such as the Nikkei, the Hang Seng, and the KOSPI each down by up to 3 per cent.
(With inputs from IANS)
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