India, Sep 09 : Indian equity markets opened lower on Wednesday as escalating tensions in the Middle East pushed Brent crude prices closer to the $100-a-barrel mark, increasing concerns over inflation and economic growth.
The Nifty 50 fell 0.56 per cent to 23,511.4, while the BSE Sensex declined 0.6 per cent to 75,122.70 in early trading. The sell off came after benchmark indices had already closed lower on Tuesday, extending pressure on domestic equities.
The IT sector was among the biggest drags, falling around 3.5 per cent. Shares of Coforge dropped sharply after the resignation of its chairman, Om Prakash Bhatt, following an internal audit that flagged issues related to the company’s board evaluation process.
Ten of the 16 major sectoral indices were trading lower, while small cap and mid cap stocks also faced selling pressure.
The weakness in Indian equities came as Brent crude climbed towards $100 a barrel following a fresh escalation in the Middle East conflict. Higher oil prices are a major concern for India because the country relies heavily on imported crude, making the economy vulnerable to increases in global energy costs.
Analysts are also watching the impact of rising crude prices on the Indian rupee, inflation and the country’s trade balance. The rupee closed at 94.8175 against the US dollar on Tuesday and was expected to remain under pressure as energy prices climbed.
Global investors are now closely monitoring developments in the region, particularly any further disruption to oil supplies and shipping routes. A prolonged rise in crude prices could put additional pressure on businesses and consumers while complicating monetary policy decisions.