Indian benchmark indices opened sharply lower on Friday as escalating tensions in West Asia pushed crude oil prices higher, raising fresh concerns about India’s economic growth and corporate earnings. Stock market today saw the Nifty 50 open at 23,270.30, down 207.50 points or 0.88 per cent, while the BSE Sensex opened 593.43 points or 0.79 per cent lower at 74,309.16. Brent crude was trading around USD 108.27 a barrel, adding pressure on oil-importing economies such as India.
Stock market today faces crude oil pressure as West Asia conflict deepens
The West Asia conflict has entered a critical phase, with the fighting shifting into a full-scale direct war primarily involving the United States and Iran. The escalation has disrupted global energy corridors and triggered military mobilisation across the region, adding to the pressure on crude prices.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market was facing stronger headwinds as the conflict intensified and crude prices climbed. “Headwinds for the market are getting stronger with the escalation in the Middle East conflict. Brent crude has shot up to around USD 108. If this high price sustains, or worse, spikes further, the impact on India’s GDP growth and consequently on corporate earnings will not be insignificant,” he said.
Stock market today tracks US yields as another global risk
Vijayakumar also highlighted rising US bond yields as another major concern for global equities. “An equally strong headwind is the rise in U.S. bond yields. The 10-year yield, now at 4.96 per cent, is approaching the 5 per cent mark, which many regard as a possible inflection point for global equities,” he said.
He said a correction in global equity markets was likely, although it was difficult to predict when it would happen. Against this backdrop, Stock market today opened under pressure across almost all major domestic sectors.
Stock market today sees metal, realty and banks lead losses
Nifty Metal was the biggest laggard at the opening, falling 2.46 per cent. Nifty Realty declined 1.75 per cent, while Nifty PSU Bank dropped 1.38 per cent. Nifty Auto fell 1.26 per cent and Nifty Private Bank declined 1.10 per cent. Nifty FMCG was down 0.78 per cent, while Nifty IT slipped 0.20 per cent.
Despite the weak start, Vijayakumar said India’s booming IPO market remained a major attraction for investors. Heavy oversubscription and attractive listing gains have drawn large numbers of investors, while excitement is also building around the upcoming NSE IPO, scheduled to open for public subscription on September 17.
Stock market today mirrors broad Asian market sell-off
The pressure was not limited to India. Japan’s Nikkei 225 fell 2.90 per cent to 63,381, while South Korea’s KOSPI declined 2.44 per cent to 6,862.22. Taiwan Weighted dropped 1.91 per cent to 46,045.83 and Shanghai Composite was down 1.82 per cent at 3,862.73.
Hong Kong’s Hang Seng declined 0.93 per cent to 24,722, while Jakarta Composite fell 1.51 per cent to 6,495.67. Singapore’s Straits Times was the exception, edging up 0.03 per cent to 5,675.97. For Stock market today, the combination of geopolitical tensions, higher crude prices and rising US yields remains a key source of pressure.
(with inputs from ANI)
Also Read: Stock Market Today: Sensex, Nifty Open Higher Despite Brent Crude Crossing USD 100; What Investors Should Know
Khalid Lateef is a Sub-Editor at NewsX Digital, specializing in Indian politics and global affairs. He also covers viral trending stories and major crime developments.
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