Mumbai, May 8: Indian equity markets opened lower on Friday as renewed tensions between the United States and Iran triggered fresh concerns across global financial markets, leading to a decline in benchmark indices and a sharp rise in crude oil prices.
The 30-share BSE Sensex slipped more than 500 points during early trade, falling 0.71 per cent to touch an intraday low of 77,291.72. Similarly, the Nifty 50 dropped 168 points, or 0.69 per cent, to 24,158.15 amid weak investor sentiment.
Banking, automobile and oil-linked stocks were among the major losers in the morning session. Sectoral indices including Nifty Private Bank, Nifty PSU Bank, Nifty Auto and Nifty Oil & Gas traded in the red.
Major laggards on the Nifty included HDFC Bank, ICICI Bank, Axis Bank, Mahindra & Mahindra, Tata Motors, Maruti Suzuki and Eicher Motors.
However, defensive sectors such as IT, pharmaceuticals and healthcare managed to outperform the broader market. Nifty IT, Nifty Pharma, Nifty Chemicals and Nifty Healthcare traded with modest gains despite the weak overall trend.
Market analysts said investor sentiment remained fragile as escalating tensions in West Asia continued to fuel volatility in global crude oil prices. Analysts also pointed to a growing divergence in market performance globally, with some economies remaining resilient despite geopolitical uncertainties.
The broader market, particularly midcap stocks, continued to show strength. Experts noted that the Nifty Midcap index has touched record highs despite concerns over elevated valuations.
On the geopolitical front, Iran accused the United States of violating the month-old ceasefire agreement, while Washington claimed its military action was retaliatory after Iranian forces allegedly targeted American naval vessels passing through the Strait on Thursday.
Iranian military officials also alleged that US forces struck an Iranian oil tanker, another vessel and civilian locations near the Strait and mainland areas.
Meanwhile, Donald Trump stated that the ceasefire remained in effect and said Washington was awaiting Tehran’s response to a fresh peace proposal.
The renewed conflict fears pushed oil prices sharply higher. Brent crude rose 2.82 per cent to $102.89 per barrel, while US West Texas Intermediate crude surged 4 per cent to $98.64 per barrel.
Asian markets also traded under pressure, with Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI declining up to 1 per cent during the session.
Overnight, Wall Street ended lower as investor caution intensified. The S&P 500 closed down 0.38 per cent, while the Nasdaq slipped 0.13 per cent.
