Indian Stocks Remain Under Pressure as Crude Oil Surges Above $100
Rising geopolitical tensions and higher energy costs weighed on investor sentiment, while markets remained cautious ahead of key US inflation data.
NEW DELHI, Sept 10: Indian equities remained under pressure on Thursday as crude oil prices stayed above the $100-per-barrel mark amid escalating tensions in the Middle East.
The Nifty 50 was almost flat in early trade, edging down 0.01 per cent to 23,429.25, while the BSE Sensex slipped 0.01 per cent to 74,759.54. The muted opening followed a sharp decline in the previous session, when both benchmarks fell to their lowest levels in about three months.
Brent crude crossed the $100 threshold as tensions involving Iran and the United States intensified, raising concerns over India’s import bill, inflation and economic growth. India is among the world’s largest crude oil importers, making a sustained increase in energy prices a key concern for policymakers and investors.
The previous day’s trading session saw the Sensex decline 813.35 points, or 1.08 per cent, to 74,764.23, while the Nifty dropped 203.60 points, or 0.86 per cent, to 23,431.50. Information technology stocks were among the biggest losers.
On Thursday, energy companies benefited from the rise in crude prices. Shares of ONGC and Oil India gained around 2 per cent and 2.4 per cent respectively, as higher oil prices can improve revenue and margins for upstream producers.
Market participants were also keeping an eye on upcoming US inflation data, which could influence expectations surrounding the Federal Reserve’s monetary policy decision next week.
The broader market remained cautious as investors assessed the possible impact of elevated energy costs on corporate earnings and domestic inflation.
Analysts said the combination of geopolitical uncertainty, expensive crude and expectations surrounding global interest rates could continue to keep markets volatile in the near term.
The pressure has also been reflected in the rupee, which has weakened against the US dollar amid concerns over higher import costs and capital outflows.
Despite the broader weakness, some individual stocks attracted buying interest. Enviro Infra rose after receiving a letter of intent from Tata Power Renewable Energy for development of a 180 MW wind power project in Maharashtra, while Shakti Pumps gained sharply after securing an order worth Rs 236 crore from Maharashtra State Electricity Distribution Company for 10,000 solar pumps.
Investors are now likely to track developments in global energy markets, movements in crude prices and upcoming inflation data for further direction.
