Sensex, Nifty open lower amid rising crude oil prices, West Asia tensions
Mumbai, July 23
Domestic equity benchmarks opened lower on Thursday amid weak global cues and rising geopolitical tensions in West Asia.
Sensex opened at 76,515.10, down 239.95 points or 0.31 per cent, while Nifty started the session at 23,904.80, slipping 91.45 points or 0.38 per cent.
Sector-wise, Nifty Oil & Gas was the worst performer, declining nearly 1 per cent. It was followed by Nifty Pharma, Nifty Realty, Nifty PSU Bank, Nifty 500 Healthcare, Nifty Cement and Nifty Private Bank.
While Nifty FMCG and Nifty MidSmall IT & Telecom traded in the green.
Among Nifty stocks, Dr Reddy's Laboratories, IndiGo, Infosys, Bajaj Finance, Cipla, Tata Steel and Larsen & Toubro were top losers, falling up to 4 per cent.
According to market experts, the Houthis' aggressive entry into the Iran-US conflict by attacking Saudi Arabian tankers in the Red Sea has intensified the West Asia crisis and pushed Brent crude prices sharply higher.
"When Brent crude trades above $95 a barrel, as it is now, it is bound to have a sentimental impact on the Indian market. India's vulnerability to high oil prices is once again becoming a macro concern," they said.
Analysts believe the negative sentiment is likely to weigh on equity markets and keep stock prices largely subdued in the near term.
However, they see the current correction as an opportunity for long-term investors to gradually accumulate high-quality stocks in growth segments at attractive valuations.
On the commodities front, international benchmark Brent crude climbed 2.57 per cent to trade above $96 per barrel, while US West Texas Intermediate (WTI) crude gained more than 2 per cent to $88.67 per barrel.
Across Asia, markets were mixed. Japan's Nikkei traded marginally higher, while Hong Kong's Hang Seng and South Korea's KOSPI surged by nearly 3 per cent. Taiwan's Weighted Index declined around 1 per cent, and Singapore's Straits Times slipped 0.8 per cent.
Additionally, US markets ended lower, with the S&P 500 declining 0.14 per cent and the Nasdaq falling 0.57 per cent.
— IANS
Reader Comments
This is the time for long-term investors to buy the dip! 📈 I've been accumulating quality stocks in banking and IT for the past few weeks. Corrections like these are opportunities. Smart money knows that geopolitics is temporary, but India's growth story is structural. Nifty will touch 25k soon in my view.
Honestly, I'm worried about my mutual fund investments. Started SIPs last year and seeing negative returns now. But my advisor says stay calm and continue SIPs. Hope he's right 🤞. These geopolitical tensions seem never-ending. First Russia-Ukraine, now West Asia...our market always pays the price.
Interesting how Nifty FMCG and IT/Telecom are still in green. Shows where the real strength is in our economy. FMCG always defensive, and IT benefits from a weak rupee. But the oil & gas sector bleeding is a warning siren for inflation. Petrol prices might rise again soon. 😒
As someone investing in Indian markets from the UK, these dips are good buying opportunities. I'm loading up on Nifty ETF and select banking stocks. India's fundamentals are much stronger than many emerging markets. The ₹ depreciation helps my returns when I convert back to pounds. Good time to buy! 🇮🇳
I wish the media would stop sensationalizing every small dip. Markets go up and down. Last week we were at all-time highs. This correction is barely 0.3%. It's normal. Focus on the long term, invest systematically, don't panic. My portfolio is still up
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