Mumbai, July 30 (ANI): India’s benchmark equity indices opened little changed on Thursday as rising crude oil prices and escalating tensions in the Middle East weighed on investor sentiment, offseting support from resilient domestic fundamentals and continued foreign investor buying.
At the opening bell, the BSE Sensex was trading at 77,638.86, down 15.74 points, or 0.02%, while the Nifty 50 stood at 24,249.55, lower by 0.65 points.
Market experts said investors remained cautious as Brent crude hovered near USD 90 a barrel amid renewed geopolitical tensions involving the United States and Iran.
Ajay Bagga, banking and market expert, told ANI, “Indian markets are trying to decouple from the global chip carnage, but crude remains the tether. This morning, USD 90 Brent and renewed US attacks on Iran will keep Indian markets subdued.”
He said the widening conflict involving key maritime trade routes, including the Strait of Hormuz, the Red Sea, and the Caspian Sea, has heightened concerns over global energy supplies and market stability.
Investors also assessed the US Federal Reserve’s decision to keep interest rates unchanged at 3.5% to 3.75%. However, the 9-3 split vote within the Federal Open Market Committee (FOMC), with three policymakers favoring a rate hike, strengthened expectations that the Fed could tighten monetary policy further if inflation remains elevated.
Among the sectoral indices on the NSE, Nifty IT gained 1.39%, Nifty Pharma rose 0.54%, Nifty Auto advanced 0.32%, Nifty Oil & Gas added 0.26%, Nifty FMCG climbed 0.18%, and Nifty Metal edged up 0.05%. Meanwhile, Nifty PSU Bank and Nifty Media traded lower during early trading.
Brent crude was trading at USD 89.58 a barrel at the time of reporting.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said higher crude prices and the Fed’s hawkish stance remain significant headwinds for equities.
“The spike in Brent crude again to near USD 90 following the escalation of the US-Iran conflict is a strong headwind. The Fed’s split decision indicates that a rate hike may come soon,” he said.
However, he added that India’s resilient economy, strong domestic fundamentals, and foreign portfolio investors (FPIs) turning net buyers in July are likely to provide support to the market despite global volatility.
In broader Asian markets, Japan’s Nikkei 225 gained more than 1% to trade at 61,820. Taiwan’s Weighted Index rose 0.18% to 40,146, while South Korea’s KOSPI advanced 0.28% to 5,678. Singapore’s Straits Times Index and Hong Kong’s Hang Seng Index, however, traded lower during early trading. (ANI)
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