Bears dominate opening trade, Nifty down 109 pts; Sensex slips 356 pts amid crude concerns

Mumbai (Maharashtra) [India], March 6 (ANI): The bearish dominance returned to the Indian stock markets on Friday's opening session as both benchmark indices opened in the red, with rising crude oil prices continuing to influence investor sentiment.

The Nifty 50 index opened at 24,656.40 with a decline of -109.50 points or -0.44 per cent, while the BSE Sensex also opened lower at 79,658.99, losing -356.91 points or -0.45 per cent.

Experts noted that crude oil prices remain a key factor influencing the direction of the markets amid ongoing geopolitical uncertainties.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "As the war continues to rage and uncertainty looms large, markets will be influenced by the crude prices. It is important to understand that even though crude has spiked by about 16 per cent since the war began this is not among the major spikes in crude compared to earlier geopolitical crises which impacted crude. This is a reflection of the potential huge supply of oil available in the global market".

He further added, "Once the West Asian crisis de-escalates, crude prices will dip sharply and markets will bounce back. Therefore, crude price will continue to influence the market in the near-term. So long as Brent crude moves around USD 85 levels, the market is unlikely to be impacted. On the other hand, if Brent price spikes above USD 90 and moves towards USD 100, globally markets will be impacted. Therefore, watch out for crude prices."

In the broader markets on the National Stock Exchange of India, selling pressure was visible across indices. The Nifty 100 opened with a decline of 0.41 per cent at the 25316 level. The Nifty Midcap 100 also lost 0.17 per cent, while the Nifty Smallcap 100 was down by 0.09 per cent.

Sectoral indices on the NSE also opened in negative territory. Nifty Auto declined by 0.44 per cent, while Nifty FMCG lost 0.31 per cent. Nifty IT was down by 0.17 per cent and Nifty Metal slipped by 0.30 per cent. Meanwhile, Nifty Private Bank declined by 0.78 per cent and Nifty Consumer Durables fell by 0.36 per cent.

The Brent crude prices were trading at USD 84.46 per barrel at the time of filing this report.

Gold prices also maintained a high level, with prices at Rs 160894 per 10 gm for 24 karat gold, while silver prices, although moderated from earlier highs, surged 2.31 per cent to Rs 268299 per kg at the opening.

Shrikant Chouhan, Head - Equity Research at Kotak Securities, said, "A bullish candle on the daily chart suggests a likely continuation of the pullback formation. For traders, 24,600/79500 and 24,500/79200 would act as key support zones. Above these levels, the market could continue its positive momentum towards 24,950-25,000/80500-80700. On the other hand, below 24,500/79200, sentiment could change. Below this level, the market can again go towards 24300/78600 levels."

In other Asian markets on Friday, Japan's Nikkei 225 gained marginally by 0.19 per cent to 55390 level, while Hong Kong's Hang Seng Index rose by 1.70 per cent to 25751 level. However, other major markets in Asia were under selling pressure, with Singapore's Straits Times Index down by 0.19 per cent to 4837 level, Taiwan's Taiwan Weighted Index losing 0.04 per cent to 33660 level, and South Korea's KOSPI declining by 1.56 per cent to 5497.

In the US markets on Thursday, the Dow Jones Industrial Average fell by 1.61 per cent to 47954 level, while the S&P 500 declined by 0.56 per cent to 6830 level. The Nasdaq Composite also slipped by 0.25 per cent to 22750. (ANI)

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