Stock markets opened lower on Thursday, as rising crude oil prices and continued foreign investor selling kept sentiment weak.
The BSE fell 409.66 points, or 0.53%, to 77,254.34 as of 9:30 am. The NSE Nifty 50 also slipped 104.35 points, or 0.43%, to 24,068.70.
The weakness comes amid a sharp rise in oil prices, with Brent crude staying above the $100 mark. Higher oil prices remain a key concern for India, which depends heavily on imports, and can push up inflation and costs across sectors.
Markets are reacting to the continued rise in crude prices linked to tensions in West Asia and uncertainty around the Strait of Hormuz.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said markets are moving between negative news and hopes of a resolution.
“Market has been continuously responding to bad news and hopes emanating from a potential deal on the West Asia conflict. A mid to long-term market direction will emerge only from clarity on the conflict resolution, particularly on the opening of the Hormuz Strait. Till then crude price will continue to fluctuate impacting the market in the process,” he said.
He added that Brent crude has surged sharply this week.
“This week Brent crude is up 18% to above $106. Another negative trend from the market perspective is that FPIs have again turned sellers this week after buying for three days last week,” Vijayakumar said.
Foreign investors have turned sellers again, which has added to the pressure on markets.
“This, along with the spike in crude, has again dragged the rupee down to 94.11 level. If this trend of FPI selling continues large caps will continue to be weak,” he said.
At the opening, IT stocks were among the biggest laggards. Infosys, TCS, HCLTech and Tech Mahindra saw losses, reflecting weak global cues and cautious outlook.
Banking and financial stocks were mixed, with some names seeing selling after recent gains.
Among gainers, M&M, SBI and Hindustan Unilever showed some resilience.
On the losing side, heavyweights such as HDFC Bank, ICICI Bank, Reliance, ITC and Titan were under pressure.
Broader markets were relatively more stable compared to large caps. However, the trend remained mixed.
India VIX, which measures market volatility, rose to around 18.87, indicating increased caution among investors.
According to Vijayakumar, market direction will depend largely on crude prices and foreign investor flows.
“Poor guidance from IT majors indicate that large cap IT stocks will continue to be weak despite the low valuations. Market trends indicate that investors are prepared to pay premium price to stocks which show growth and good long-term prospects. That’s why there is lot of activity in the broader market,” he said.
For now, with oil prices elevated, rupee under pressure and FPIs turning sellers, markets may remain volatile in the near term.
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