Stock markets were under pressure on Friday as rising tensions in West Asia and higher crude oil prices pushed investors to sell shares. The fall came just , showing that trading has become volatile in recent sessions.
The S&P BSE Sensex was down 566.31 points at 79,449.59, while the NSE Nifty50 fell 164.85 points to 24,601.05 as of 11:24 am. Sensex and Nifty shed over half a percent.
The main reason behind the fall in the stock market is the . The situation has raised concerns about possible disruption in global energy supply.
If the conflict affects oil supply, crude prices may rise further. Higher oil prices can increase costs for many economies and push inflation higher. This has made investors cautious and led to selling in the market.
Due to these concerns, investor sentiment has turned negative. Many investors have chosen to reduce their exposure to equities, which has led to a broad-based decline across several sectors on Dalal Street.
Some stocks, however, helped limit the fall. IT shares and heavyweights such as Reliance Industries Ltd traded higher during the session. Their gains prevented the market from falling further.
Market experts say crude oil prices will remain an important factor for stock markets in the coming days.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said markets will continue to react to developments in the conflict and the movement in crude oil prices.
“As the war continues to rage and uncertainty looms large, markets will be influenced by the crude prices. It is important to understand that even though crude has spiked by about 16% since the war began this is not among the major spikes in crude compared to earlier geopolitical crises which impacted crude. This is a reflection of the potential huge supply of oil available in the global market.”
He said the situation could improve if tensions ease in West Asia.
“Once the West Asian crisis deescalates, crude prices will dip sharply and markets will bounce back. Therefore, crude price will continue to influence the market in the near-term.”
Dr. Vijayakumar added that investors should closely track the movement of Brent crude prices.
“So long as Brent crude moves around $85 levels, the market is unlikely to be impacted. On the other hand, if Brent price spikes above $90 and moves towards $100, globally markets will be impacted. Therefore, watch out for crude prices.”
A few hours after the opening bell, Bharat Electronics Ltd remained the top gainer, rising 2.49%. Reliance Industries Ltd followed with a gain of 1.71%. NTPC Ltd was up 1.65%, HCL Technologies Ltd gained 0.92%, and Power Grid Corporation of India Ltd climbed 0.70%.
On the losing side, ICICI Bank Ltd was the worst performer, falling 2.49%. Bajaj Finserv Ltd declined 2.12%, Axis Bank Ltd dropped 2.08%, IndusInd Bank Ltd slipped 2.01%, and Larsen and Toubro Ltd was down 1.88% during the session.
In the broader market, midcap and smallcap stocks showed some strength. The Nifty Midcap 100 index rose 0.45% while the Nifty Smallcap 100 gained 0.59%.
India VIX, which reflects market volatility, was up 2.36%, showing that uncertainty among investors remains high.
Among sectoral indices, several sectors were trading lower. Nifty Auto fell 0.49%, Nifty Financial Services 25/50 declined 0.74%, and Nifty FMCG slipped 0.10%. Nifty Media was down 0.11%, Nifty PSU Bank declined 0.21%, and Nifty Private Bank dropped 0.95%. Nifty Realty was down 0.44% and the Nifty Healthcare Index slipped 0.15%.
Some sectors, however, managed to trade in the green. Nifty IT rose 1.31%. Nifty Metal and Nifty Pharma both gained 0.01%. Nifty Consumer Durables was up 0.07%, while Nifty Oil & Gas edged higher by 0.09%.
The market is likely to remain sensitive to global developments in the near term. Investors are closely watching the movement in crude oil prices and any developments in the ongoing conflict, as these factors may continue to influence market direction in the coming days.