Indian Equity Markets Open Sharply Lower Amid Rising Crude Oil Prices

Indian equity markets opened sharply lower on Wednesday, with the Sensex dropping 700 points, driven by rising crude oil prices and consistent FPI selling despite positive trends in broader Asian markets.

Market Overview and Performance

Indian equity markets opened sharply lower on Wednesday, with the Sensex falling nearly 700 points and the Nifty slipping below 22,600, as rising crude oil prices and persistent foreign portfolio investor (FPI) selling weighed on sentiment, according to market experts. The cautious opening came despite gains on Wall Street and across major Asian markets, with investors also tracking geopolitical risks and the Federal Reserve's policy meeting.

Brent crude was trading at USD 115.39 per barrel, up 1.32 per cent, while crude oil rose 1.44 per cent to USD 101.34. At the opening, the BSE Sensex stood at 72,907.65, down 691.02 points or 0.94 per cent from its previous close of 73,598.67. It opened at 73,253.44. The NSE Nifty 50 traded at 22,566.45, down 183.30 points or 0.81 per cent from its previous close of 22,749.75, after opening at 22,678.00.

Expert Analysis and Market Outlook

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market had turned decisively weak, with indications of a decline of around 250 points in the Nifty's implied opening. “There are reports of possible renewed strikes by the US on Iran after the mid-term elections in the US. Brent crude has again firmed up to above $115, which is bad news for the Indian economy and markets,” he said. Vijayakumar said a recovery in the domestic market would depend on crude prices declining and foreign portfolio investors halting their sustained selling and turning buyers. He added that changes in long-term capital gains (LTCG) tax appeared increasingly likely, given the scale of foreign outflows.

Hemang Gor, Senior Research Analyst – Derivatives and Technical Research at Axis Direct, said the market remained cautious following a largely flat October derivatives expiry. The Nifty had closed the previous session at 22,749.75, while profit-booking in information technology stocks and private banks weighed on the Bank Nifty. Gor identified 22,500 as immediate support for the Nifty, warning that a break below this level could take the index towards 22,300. A sustained move above 22,900 could open the way towards 23,000–23,100.

Stock Performance and Sector Trends

Among stocks, IT shares were under pressure, with Infosys falling 4.34 per cent, Tech Mahindra declining 3.84 per cent and HCL Technologies losing 3.54 per cent. Larsen & Toubro gained 5.73 per cent, while Bajaj Auto rose 2.31 per cent. Shares of Jio Platforms were in focus as the company is set to make its stock market debut on Wednesday at an issue price of Rs 1,119 per share, the upper end of its price band. The IPO received an overwhelming response, with the issue subscribed 22.19 times, setting a global record for an IPO, according to exchange data.

Sectoral indices were largely in the red, with the Nifty IT index leading losses, declining 3.77 per cent. The Nifty FMCG index fell 1.51 per cent, while financial services, media, metal, pharmaceutical and PSU bank indices also traded lower. The Nifty Auto index bucked the trend, rising 0.17 per cent. Asian markets were largely positive, with South Korea's KOSPI rising 6.22 per cent and Japan's Nikkei 225 gaining 1.51 per cent.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)