Sensex, Nifty decline as geopolitical tensions and rising oil prices pressure markets

Indian equity markets opened lower on Tuesday as escalating geopolitical tensions and a surge in crude oil prices triggered selling pressure among investors.

The BSE Sensex declined 524.12 points, or 0.68 per cent, to trade at 77,092.28, while the broader NSE Nifty 50 fell 145.20 points, or 0.60 per cent, to 24,065.80.

In the commodities market, crude oil prices moved higher amid global concerns. Brent crude gained 1.88 per cent, or USD 1.56, to USD 84.86 per barrel, while crude oil futures rose 2.24 per cent, or USD 1.75, to USD 79.89 per barrel. Gold prices also advanced 0.34 per cent, or USD 13.49, to trade at USD 4,015.28.

Market experts said rising global uncertainties have overshadowed domestic factors, making investor sentiment cautious. Banking and market expert Ajay Bagga said global markets were heading into a highly volatile trading session amid heightened geopolitical risks.

“The global financial landscape is bracing for a highly volatile and tense trading session today,” Bagga said.

He said concerns over escalating military tensions in the Middle East, hawkish signals from central banks and upcoming inflation data had created a risk-off environment, even as the US earnings season began with expectations of strong corporate growth.

US markets also remained under pressure, with Dow Jones Futures declining 167.87 points to 52,330.77, S&P 500 futures falling 60.05 points to 7,515.34, and Nasdaq futures dropping 408.43 points to 25,873.18.

Bagga said weak global cues had already indicated a subdued opening for Indian equities. “With the GIFT Nifty flashing a gap-down opening and Asian markets in the red, Dalal Street is set for a turbulent ride on a usually volatile weekly Nifty expiry day,” he added.

Asian markets witnessed broad-based losses, with Taiwan Weighted falling 3.81 per cent, or 1,667.25 points, to 43,713.27, while South Korea’s KOSPI declined 3.51 per cent, or 230.97 points, to 6,575.96.

Other major regional indices, including Japan’s Nikkei 225, Hong Kong’s Hang Seng, Shanghai Composite, Singapore’s Straits Times, Thailand’s SET Composite and India’s GIFT Nifty, also traded lower. The Jakarta Composite was an exception, gaining 0.66 per cent, or 40.41 points, to 6,078.25.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the 20-day Simple Moving Average (SMA) levels of 24,000 for Nifty and 77,000 for Sensex would act as key support zones for short-term traders.

“On the upside, 24,275/77,800 could act as immediate resistance for day traders. If the market successfully breaks above this level, the rally could continue towards 24,350-24,400/78,000-78,200,” Chouhan said.

He added that a breach below the 24,000/77,000 levels could weaken the prevailing uptrend and trigger a gradual decline towards 23,800/76,400.