Sensex, Nifty tank in early trade lower as Brent crude tops $100
The BSE Sensex fell 585.21 points, or 0.77%, to 75,806.18, while the NSE Nifty50 declined 173.65 points, or 0.73%, to 23,695.95 around 9:30 am.
Benchmark equity indices opened sharply lower on Friday, extending their losing streak to a fifth straight session, as Brent crude surged above the $100-a-barrel mark amid escalating tensions in the Middle East. Weak June-quarter earnings from Infosys and IndiGo, along with overnight losses on Wall Street, further dampened investor sentiment.
The BSE Sensex fell 585.21 points, or 0.77%, to 75,806.18, while the NSE Nifty50 declined 173.65 points, or 0.73%, to 23,695.95 around 9:30 am.
The selloff came after US President Donald Trump vowed "major military punishment" for Iran and its Houthi allies following attacks on two Saudi oil tankers in the Red Sea, raising fears of further disruptions to global energy supplies.
BRENT CRUDE CROSSES $100
Crude oil remained the biggest concern for Dalal Street.
Brent crude climbed to $100.64 per barrel, while WTI crude traded at $91.99, keeping investors worried about rising inflation, India's import bill and corporate profit margins.
Higher oil prices are particularly negative for India, the world's third-largest crude importer, as they widen the trade deficit, put pressure on the rupee and increase costs for businesses.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the sharp spike in oil prices has become the biggest macro risk for Indian markets.
"The total uncertainty and high volatility in markets continues without any signs of immediate respite. The attack on Saudi tankers by the Iran-backed Houthis in the Red Sea is the main reason for the recent sharp spike in Brent crude to about $100. Such high price is bound to revive India's Balance of Payments concerns. Rupee too has been impacted, though mildly, with the currency depreciating to 96.57 to the dollar."
He added that foreign investors have turned cautious again.
"With the rupee weakening again, FPIs who had turned buyers on many days this month have again shifted to the sell-mode. The spike in the US 10-year yield to 4.7% is negative for equity markets globally. This is a near-term risk."
INFOSYS, INDIGO RESULTS HURT SENTIMENT
Apart from rising crude prices, disappointing June-quarter earnings from Infosys and IndiGo also weighed on markets.
Infosys was the biggest loser among Sensex stocks, falling 1.43%, while IndiGo declined after reporting weaker-than-expected quarterly results.
The weakness spread across the market, with the Nifty Auto index falling 0.96%, Realty declining 1.33%, Consumer Durables slipping 1.09%, Metal losing 0.88% and Oil & Gas falling 0.85%.
Among the few pockets of strength, the Nifty IT index rose 0.23%, while the broader market also traded weak. The Nifty Smallcap 100 declined 0.83%, Nifty Midcap 100 fell 0.78% and the Nifty Midcap 50 slipped 0.71%.
India VIX jumped 5.75%, indicating heightened market volatility.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark equity indices opened sharply lower on Friday, extending their losing streak to a fifth straight session, as Brent crude surged above the $100-a-barrel mark amid escalating tensions in the Middle East. Weak June-quarter earnings from Infosys and IndiGo, along with overnight losses on Wall Street, further dampened investor sentiment.
The BSE Sensex fell 585.21 points, or 0.77%, to 75,806.18, while the NSE Nifty50 declined 173.65 points, or 0.73%, to 23,695.95 around 9:30 am.
The selloff came after US President Donald Trump vowed "major military punishment" for Iran and its Houthi allies following attacks on two Saudi oil tankers in the Red Sea, raising fears of further disruptions to global energy supplies.
BRENT CRUDE CROSSES $100
Crude oil remained the biggest concern for Dalal Street.
Brent crude climbed to $100.64 per barrel, while WTI crude traded at $91.99, keeping investors worried about rising inflation, India's import bill and corporate profit margins.
Higher oil prices are particularly negative for India, the world's third-largest crude importer, as they widen the trade deficit, put pressure on the rupee and increase costs for businesses.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the sharp spike in oil prices has become the biggest macro risk for Indian markets.
"The total uncertainty and high volatility in markets continues without any signs of immediate respite. The attack on Saudi tankers by the Iran-backed Houthis in the Red Sea is the main reason for the recent sharp spike in Brent crude to about $100. Such high price is bound to revive India's Balance of Payments concerns. Rupee too has been impacted, though mildly, with the currency depreciating to 96.57 to the dollar."
He added that foreign investors have turned cautious again.
"With the rupee weakening again, FPIs who had turned buyers on many days this month have again shifted to the sell-mode. The spike in the US 10-year yield to 4.7% is negative for equity markets globally. This is a near-term risk."
INFOSYS, INDIGO RESULTS HURT SENTIMENT
Apart from rising crude prices, disappointing June-quarter earnings from Infosys and IndiGo also weighed on markets.
Infosys was the biggest loser among Sensex stocks, falling 1.43%, while IndiGo declined after reporting weaker-than-expected quarterly results.
The weakness spread across the market, with the Nifty Auto index falling 0.96%, Realty declining 1.33%, Consumer Durables slipping 1.09%, Metal losing 0.88% and Oil & Gas falling 0.85%.
Among the few pockets of strength, the Nifty IT index rose 0.23%, while the broader market also traded weak. The Nifty Smallcap 100 declined 0.83%, Nifty Midcap 100 fell 0.78% and the Nifty Midcap 50 slipped 0.71%.
India VIX jumped 5.75%, indicating heightened market volatility.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark equity indices opened sharply lower on Friday, extending their losing streak to a fifth straight session, as Brent crude surged above the $100-a-barrel mark amid escalating tensions in the Middle East. Weak June-quarter earnings from Infosys and IndiGo, along with overnight losses on Wall Street, further dampened investor sentiment.
The BSE Sensex fell 585.21 points, or 0.77%, to 75,806.18, while the NSE Nifty50 declined 173.65 points, or 0.73%, to 23,695.95 around 9:30 am.
The selloff came after US President Donald Trump vowed "major military punishment" for Iran and its Houthi allies following attacks on two Saudi oil tankers in the Red Sea, raising fears of further disruptions to global energy supplies.
BRENT CRUDE CROSSES $100
Crude oil remained the biggest concern for Dalal Street.
Brent crude climbed to $100.64 per barrel, while WTI crude traded at $91.99, keeping investors worried about rising inflation, India's import bill and corporate profit margins.
Higher oil prices are particularly negative for India, the world's third-largest crude importer, as they widen the trade deficit, put pressure on the rupee and increase costs for businesses.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the sharp spike in oil prices has become the biggest macro risk for Indian markets.
"The total uncertainty and high volatility in markets continues without any signs of immediate respite. The attack on Saudi tankers by the Iran-backed Houthis in the Red Sea is the main reason for the recent sharp spike in Brent crude to about $100. Such high price is bound to revive India's Balance of Payments concerns. Rupee too has been impacted, though mildly, with the currency depreciating to 96.57 to the dollar."
He added that foreign investors have turned cautious again.
"With the rupee weakening again, FPIs who had turned buyers on many days this month have again shifted to the sell-mode. The spike in the US 10-year yield to 4.7% is negative for equity markets globally. This is a near-term risk."
INFOSYS, INDIGO RESULTS HURT SENTIMENT
Apart from rising crude prices, disappointing June-quarter earnings from Infosys and IndiGo also weighed on markets.
Infosys was the biggest loser among Sensex stocks, falling 1.43%, while IndiGo declined after reporting weaker-than-expected quarterly results.
The weakness spread across the market, with the Nifty Auto index falling 0.96%, Realty declining 1.33%, Consumer Durables slipping 1.09%, Metal losing 0.88% and Oil & Gas falling 0.85%.
Among the few pockets of strength, the Nifty IT index rose 0.23%, while the broader market also traded weak. The Nifty Smallcap 100 declined 0.83%, Nifty Midcap 100 fell 0.78% and the Nifty Midcap 50 slipped 0.71%.
India VIX jumped 5.75%, indicating heightened market volatility.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
