Domestic stock markets extended Wednesday’s sharp fall on Thursday morning, with the and the Nifty slipping below 23,600, as rising oil prices, global market jitters and continued foreign investor selling weighed on sentiment.
At around 9:25 am, the Sensex was down about 832 points at 76,031, while the Nifty 50 fell 272 points to 23,594. Most heavyweight stocks across banking, auto and metal sectors were trading in the red.
Escalating tensions involving Iran and Israel have disrupted tanker movement near the Strait of Hormuz, one of the world’s most important oil routes. In addition, Iran has also started .
This has pushed Brent crude close to $100 per barrel, raising concerns about higher inflation and global economic pressure.
Higher oil prices are particularly negative for India since the country imports most of its crude oil.
Global markets remained cautious overnight as investors reacted to rising oil prices and geopolitical tensions.
US markets closed mixed, but Dow futures later fell about 500 points as oil prices surged further. Asian markets also slipped on Thursday amid fears that higher oil prices could push inflation up and keep interest rates higher for longer.
Continuous selling by foreign institutional investors (FIIs) is also putting pressure on Indian markets.
According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, domestic investors are buying, but it is not enough to offset heavy foreign selling.
“External headwinds have pushed the market into a weak zone. Even though domestic institutions are buying, sustained FII selling is keeping markets under pressure,” he said.
Vijayakumar added that investors should stay calm during such phases. He said markets have historically recovered strongly once geopolitical tensions ease, and long-term investors can continue SIPs and gradually buy quality stocks during market corrections.